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: Account Titles Debit Credit Cash $14,770 Inventory Common Stock $ 7,310 Retained Earnings 10,510 Total $17,820 $17,820 3,058 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,240, 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $285 cash. 3. Returned $460 of damaged merchandise for credit on account 4. Agreed to keep other damaged merchandise for which the company received an $220 allowance. 5. Sold merchandise that cost $2,640 for $13,300 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $160 cash 7. Paid $2,900 on the merchandise purchased in Event 1. 8. Paid $8,600 cash for operating expenses. c. Prepare a multistep income statement, balance sheet, and statement of cash flows. (Assume that closing entries have been made.) B c. Prepare a multistep income statement, balance sheet, and statement of cash flow 3 of 4 Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Statement of Cash Flows TS Prepare an income statement. eBook TERRY'S AUTO SHOP Income Statement For the Year Ended December 31, Year 2 Hint Ask Print Income Statement Balance Sheet References Required information Income Statement Balance Sheet Statement of Cash Flows Prepare a balance sheet. TERRY'S AUTO SHOP Balance Sheet As of December 31, Year 2 Assets Total assets Liabilities Total liabilities Stockholders' equity nces Total stockholders' equity Total liabilities and stockholders' equity Income Statement Statement of Cash Flows