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 $6,180 3,020 7,480 1,720 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,260. 2. The goods in Event 1 were purchased FOB shipping point with transportation cost of $280 cash. 3. Returned $445 of damaged merchandise. 4. Agreed to keep other damaged merchandise for which the company received a $225 allowance. 5. Sold merchandise that cost $2,660 for $4,840 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with transportation costs amounting to $150 cash. 7. Paid $2,830 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 neededs for the Retained Earnings amounts. Note: 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 Effect of Events on the Financial Statements Assets Events Liabilities Accounts + Cash + Inventory Payable Common Stock + Stockholders' Equity Retained Earnings Accounts Titles for Retained Earnings + + + + + + Beginning Balance 1. Purchased Inventory 2. Transport 3. Returned Inventory 4. Allowance + 5a. Sales 5b. Cost 6. Transportation 7. Paid Accounts Payable + + + Ending Balance + + +