The account balances for Terry's Auto Shop as of January 1, 2016, are as follows:

Account TitlesCash $6,150Inventory$3,040Common Stock$7,380Retained Earnings$1,810Total $9,190

The following events affected the company during the 2016 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 $295 cash.

3.Returned $410 of damaged merchandise for credit on account.

4.Agreed to keep other damaged merchandise for which the company received an $265 allowance.

5.Sold merchandise for $4,940 cash that cost $2,580.

6.Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $120 cash.

7.Paid $2,890 on the merchandise purchased in Event 1.

TERRY'S AUTO SHOP

Income Statement

For the Year Ended December 31, 2016

Net sales

Cost of goods sold

Gross margin

Operating expenses$

TERRY'S AUTO SHOP

Balance Sheet

As of December 31, 2016

Assets

Total assets

Liabilities

Total liabilities

Stockholders' equity

Total stockholders' equity

Total liabilities and stockholders' equity