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 Common Stock Retained Earnings Beginning Balances $6,160 3,090 7,330 1,920 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,110, 2. The goods in Event 1 were purchased FOB shipping point with transportation cost of $270 cash 3. Returned $415 of damaged merchandise. 4. Agreed to keep other damaged merchandise for which the company received a $250 allowance. 5. Sold merchandise that cost $2,580 for $4.920 cash 6. Delivered merchandise to customers in Event 5 under terms FOB destination with transportation costs amounting to $105 cash 7. Paid $2,850 on the merchandise purchased in Event 1 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 Beg Bal H11 + ++ 1. Pur Inv 2. Transport 3. Ret Iny 4. Allow ba Sales 5b Cost 6. Tan. 7. Paid AP End Bal Sales Cost of sales Transportation out expenses 01 01 0 ! Required information Terry Inc Stmt Terry Stmt CF Prepare an income statement. TERRY'S AUTO SHOP Income Statement For the Year Ended December 31, Year 2 0 Operating expenses $ 0 Terry Strtc TERRY'S AUTO SHOP Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flow from operating activities CA $ 0 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash 0 Ending cash balance $ 0