Required information [The following information applies to the questions displayed below.] The trial balance for Terry's Auto Shop as of January 1, Year 2, follows: Account Titles Cash Inventory Common Stock Retained Earnings Debit $ 14,790 3,030 Credit $ 7,440 10,380 Save & Ex Total $ 17,820 $ 17,820 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 freight cost of $235 cash. 3. Returned $435 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received an $220 allowance. 5. Sold merchandise that cost $2,560 for $13,900 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $140 cash. 7. Paid $2,870 on the merchandise purchased in Event 1. 8. Paid $8,640 cash for operating expenses. Prepare a multistep income statement, balance sheet, and statement of cash flows. (Assume that closing entries have been ma S Prev 3 4 of 4 Next >