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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,

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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: The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost$4,200 2. The goods in Event 1 were purchased FOB shipping point with transportation cost of $250 cash. 3. Returned $400 of damaged merchandise. 4. Agreed to keep other damaged merchandise for which the company received a $260 allowance. 5. Sold merchandise that cost $2,640 for $4,860 cash 6. Delivered merchandise to customers in Event 5 under terms FOB destination with transportation costs amounting to $155 cash. 7. Paid $2,910 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 occount balances with o minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require on input - leave cells blank if there is no corresponding Retoined Earnings input needed. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{11}{|c|}{ TERRY'S AUTO SHOP } \\ \hline \multirow[b]{3}{*}{ Events } & \multicolumn{9}{|c|}{ Effect of Evonts on the Financial Statements } & \multirow[b]{3}{*}{AccountsThlesforRetainedEarnings} \\ \hline & \multicolumn{3}{|c|}{ Assets } & \multirow[t]{2}{*}{=1} & \multirow{2}{*}{LiabiritiesAccountsPayable} & \multirow{2}{*}{. } & \multicolumn{3}{|c|}{ Stockholders' Equity } & \\ \hline & Cash & + & linventory & & & & CommonStock & - & RetainedEarnings & \\ \hline Begkining Balance & & + & & & & - & & 1+ & & \\ \hline 1. Purchased inventory & & + & & = & & + & & + & & \\ \hline 2. Trampot & & + & & = & & + & & + & & \\ \hline 3. Returned inventory & & +7 & & A & & + & & + & (11) & \\ \hline 4 Alowance & & + & & = & & t. & &. & IIIII & \\ \hline 5a. Sales & & & & 4 & & 1 & & & & 101010010010 \\ \hline 56 Cost & & & & & & & & & 1111 & \\ \hline 6. Transportation & & + & & F & +4 & + & 78 & + & IIIII & \\ \hline 7. Paid Accounts Payatle & & & & & & 1.7 & & 7 & IIII & \\ \hline Ending Balence & 0. & & & 10 & 0 & 1+ & & 1. & 0 & \\ \hline \end{tabular}

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