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 Beginning Balances Canh $6,130 Inventory 3,180 Common Stock 7,430 Retained Earnings 1,880 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,270. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $255 cash. 3. Returned $430 of damaged merchandise for credit on account 4. Agreed to keep other damaged merchandise for which the company received a $235 allowance, 5. Sold merchandise that cost $2,570 for $4,900 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $195 cash. 7. Pald $2,870 on the merchandise purchased in Event 1. Required a. Organize appropriate ledger accounts under an accounting equation Record the beginning balances and the transaction data the accounts. In the last column of the table, provide appropriate account titles for the Retained Earnings amounts. (Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank. Not every cell will require entry.) TERRY'S AUTO SHOP Effect of Events on the Financial Statements Assets Liabilities + Stockholders' Equity Common Inventory Accounts Retained Payable Stock Earnings Events Cash Accounts Titles for Retained Earnings Beg. Bal 1. 2 3. 4. ####### ++++ . 5a. 5b 6. 7 End Bal 0 0 0