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 Cash Inventory 'Connon stock Retained Earnings einning Balances 56,110 3.000 7,390 1,720 The following events affected the company during the Year 2 accounting period 1. Purchased merchandise on account that cost $4,210 2. The goods in Event 1 were purchased FOB Shipping point with transportation cost of $215 cash 3. Returned $495 of damaged merchandise 4. Agreed to keep other damaged merchandise for which the company received a $20 allowance 5. Sold merchandise that cost $2,660 for $4,870 cash 6. Delivered merchandise to customers in Event 5 under terms FOB destination with transportation costs amounting to $140 cash 7. Paid $2.960 on the merchandise purchased in Event Required o. 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 cells blank if there is no corresponding Retained Earnings input needed.) TERRY'S AUTO SHOP Ellect of Events on the Financial Statements Labilities Stockholders' Equity Accounts Inventory Common Retained Payable Stock Eainings Cash Accounts Titles for Retained Earnings Ents Beg Bal 1. Putin 2. Transport 3. Retiny 4 Abow 5. Sales So Cost H 7 Paid AP 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 Dinances Cash $6, 110 Inventory 3,000 Cenon Stock 7,390 tained Earnings 1,720 The following events affected the company during the Year 2 accounting period 1. Purchased merchandise on account that cost $4,210. 2. The goods in Event were purchased FOB shipping point with transportation cost of $215 cash 3. Retumed $495 of damaged merchandise 4. Agreed to keep other damaged merchandise for which the company received a 5210 allowance 5. Sold merchandise that cost $2660 for $4.870 cash 6. Delivered merchandise to customers in Event 5 under terms FOB destination with transportation costs amounting to $140 cash 7. Paid $2.960 on the merchandise purchased in Event 1. b. Prepare an income statement and a statement of cash flows for Year 2. (Assume that closing entries have been made) Complete this question by entering your answers in the tabs below. Terry Inc Stmt Terry Stmt CF Prepare an income statement TERRY'S AUTO SHOP Incon Statement For the Year Ended December 31, Year 2 Operating expenses Terry Stmt CE > Complete this question by entering your answers in the tabs below. Terry Inc Stmt Terry Stmt CF Prepare a statement of cash flows. (Cash outflows should be indicated with a minus sign.) TERRY'S AUTO SHOP Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flow from operating activities Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance
