Required information

[The following information applies to the questions displayed below.]

The trial balance for Terrys Auto Shop as of January 1, Year 2, follows:

Account Titles	Debit			Credit
Cash	$	14,760
Inventory		3,170
Common Stock				$	7,310
Retained Earnings					10,620
Total	$	17,930		$	17,930

The following events affected the company during the Year 2 accounting period:

Purchased merchandise on account that cost $4,140.

The goods in Event 1 were purchased FOB shipping point with freight cost of $215 cash.

Returned $405 of damaged merchandise for credit on account.

Agreed to keep other damaged merchandise for which the company received an $250 allowance.

Sold merchandise that cost $2,630 for $13,000 cash.

Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $150 cash.

Paid $2,840 on the merchandise purchased in Event 1.

Paid $8,600 cash for operating expenses.

c. Prepare a multistep income statement, balance sheet, and statement of cash flows. (Assume that closing entries have been made.)

Complete this question by entering your answers in the tabs below.

Income Statement

Balance Sheet

Statement of Cash Flows