Question
The beginning account balances for Terrys Auto Shop as of January 1, Year 2, follow: Account Titles Beginning Balances Cash $ 6,190 Inventory 3,190 Common
The beginning account balances for Terrys Auto Shop as of January 1, Year 2, follow:
| Account Titles | Beginning Balances |
|---|---|
| Cash | $ 6,190 |
| Inventory | 3,190 |
| Common Stock | 7,480 |
| Retained Earnings | 1,900 |
The following events affected the company during the Year 2 accounting period:
- Purchased merchandise on account that cost $4,180.
The goods in Event 1 were purchased FOB shipping point with freight cost of $200 cash.
Returned $460 of damaged merchandise for credit on account.
Agreed to keep other damaged merchandise for which the company received a $240 allowance.
Sold merchandise that cost $2,640 for $4,850 cash.
Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $135 cash.
Paid $2,980 on the merchandise purchased in Event 1.
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Corporate Governance And Financial Management Computational Optimization Modelling And Accounting Perspectives
Authors: S Nuryanah, S Islam
1st Edition
1349493228, 9781349493227
