The beginning account balances for Austins Auto Shop as of January 1, 2014, follows Account Titles Beginning Balances Cash $10,500 Inventory 7,500 Common stock 12,000 Retained earnings 6,000 The following events affected the company during the 2014 accounting period 1 Purchased merchandise on account that cost $10,300 2 The goods in Event 1 were purchased FOB shipping point with freight cost of $720 cash 3 Returned $1,240 of damaged merchandise for credit on account 4 Agreed to keep other damaged merchandise for which the company received an $620 allowance 5 Sold merchandise that cost $6,940 for $12,010 cash 6 Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $480 cash 7 Paid $7,500 on the merchandise purchased in Event 1 a Organize appropriate ledger 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 account titles for the Retained Earnings amounts (Enter any decreases to account balances with a minus sign Select NA if there is no effect on the Accounts Titles for Retained Earnings )

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Posted on Sep 17, 2024

The beginning account balances for Austins Auto Shop as of January 1, 2014, follows: Account Titles Beginning Balances Cash $10,500 Inventory 7,500 Common stock 12,000

The beginning account balances for Austins Auto Shop as of January 1, 2014, follows:

Account Titles	Beginning Balances
Cash	$10,500
Inventory	7,500
Common stock	12,000
Retained earnings	6,000

The following events affected the company during the 2014 accounting period:

1.	Purchased merchandise on account that cost $10,300.
2.	The goods in Event 1 were purchased FOB shipping point with freight cost of $720 cash.
3.	Returned $1,240 of damaged merchandise for credit on account.
4.	Agreed to keep other damaged merchandise for which the company received an $620 allowance.
5.	Sold merchandise that cost $6,940 for $12,010 cash.
6.	Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $480 cash.
7.	Paid $7,500 on the merchandise purchased in Event 1.

Organize appropriate ledger 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 account titles for the Retained Earnings amounts. (Enter any decreases to account balances with a minus sign. Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings".)