! Required information [The following information applies to the questions displayed below.] The trial balance for Terry's Auto Shop as of January 1, Year 2, follows: Credit Account Titles Cash Inventory Common Stock Retained Earnings Total Debit $ 14,610 3,160 $ 7,370 10,400 $ 17,770 $ 17,770 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,140. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $275 cash. 3. Returned $460 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received an $235 allowance. 5. Sold merchandise that cost $2,740 for $13,900 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $135 cash. 7. Paid $2,870 on the merchandise purchased in Event 1. b. Open general ledger T-accounts with the appropriate beginning balances, and post the journal entries to the T-accounts. Cash Accounts Payable 4 Beg. Bal Beg. Bal 2. 5:29 End. Bal End. Bal TERRERIERRE n Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Statement of Cash Flows 10 Prepare an income statement. TERRY'S AUTO SHOP Income Statement For the Year Ended December 31, Year 2 es