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 $6,100 Inventory 3,090 7,410 Retained Earnings 1,780 Cash Common Stock The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4.230. 2. The goods in Event 1 were purchased FOB shipping point with transportation cost of $295 cash. 3. Returned $470 of damaged merchandise. 4. Agreed to keep other damaged merchandise for which the company received a $265 allowance. 5. Sold merchandise that cost $2,620 for $4,890 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with transportation costs amounting to $100 cash 7. Pald $2.930 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. (Enter any decre to account balances with a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an inpu leave cells blank if there is no corresponding Retained Earnings input needed.) Required a. Organize appropriate accounts under an accounting equation. Record the beginning balances and the transaction data in accounts. In the last column of the table, provide appropriate input needed for the Retained Earnings amounts. (Enter any d to account balances with a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an 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 Retained Inventory Payable Stock Earnings + Events Cash Accounts Titles for Retained Earnings Beg Bal 1 Pur Inv 2 Transport 3. Ret. In 4. Allow 5a Sales 5b Cost 6 JU 7 Paid AP End Bal 0 0 01 0 0