Required information [The following information applies to the questions displayed below.) The beginning account balances for Terry's Auto Shop as of January 1, Year 2, follow: Account Titles Beginning Balances Cash $6,000 Inventory 3,110 Common Stock 7, 470 Retained Earnings 1,720 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,130. 2. The goods in Event 1 were purchased FOB shipping point with transportation cost of $250 cash. 3. Returned $470 of damaged merchandise. 4. Agreed to keep other damaged merchandise for which the company received a $220 allowance 5. Sold merchandise that cost $2,560 for $4,810 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with transportation costs amounting to $150 cash 7. Paid $2,850 on the merchandise purchased in Event 1. Required a. Organize appropriate accounts under an accounting equation Record the beginning balances and the transaction data in the accounts. In the last column of the table, provide appropriate input needed for the Retained Earnings amounts. (Enter any decreases to account balances with a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input- leave falle blank If there le nn rarreennndinn Dat sinart Earninne innut naastast TERRY'S AUTO SHOP + Effect of Events on the Financial Statements Assets Liabilities Stockholders' Equity Accounts Common Retained Inventory Payable Stock Earnings Events Cash Accounts Titles for Retained Earnings +++++ ++ + +1 Beg. Bal. 1. Pur. Inv. 2. Transport 3. Ret. Inv. 4. Allow 5a. Sales 5b. Cost 6. Tran. 7. Pald AP End Bal ++