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 $6,050 3,090 7,410 1,730 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,300. 2. The goods in Event 1 were purchased FOB shipping point with transportation cost of $270 cash. 3. Returned $455 of damaged merchandise. 4. Agreed to keep other damaged merchandise for which the company received a $270 allowance. 5. Sold merchandise that cost $2,570 for $4,800 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with transportation costs amounting to $115 cash. 7. Paid $2,970 on the merchandise purchased in Event 1. Required a. Organize appropriate accounts under an accounting equation. Record the beginning balances and the transacti accounts. In the last column of the table, provide appropriate input neededs for the Retained Earnings amounts. (E to account balances with a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may leave cells blank if there is no corresponding Retained Earnings input needed.) TERRY'S AUTO SHOP Effect of Events on the Financial Statements Assets Liabilities + Stockholders' Equity Accounts Common Events Beg. Bal. Cash + Inventory + Payable Stock Retained Earnings + + 1. Pur. Inv. 2. Transport 3. Ret. Inv. 4. Allow. 5a. Sales 5b. Cost 6. Tran. 7. Paid AP End Bal. 0 + + + + + + + + + + + + 0 + + + + 0+ Accounts Titles for Retained Earnings