The following information applies to the questions displayed below.) The trial balance for Terry's Auto Shop as of January 1, Year 2, follows: Account Titles Debit Credit Cash $14,810 Inventory 3, 120 Common Stock $ 7,460 Retained Earnings 10, 470 Total $17,930 $17,930 The following events affected the company during the Year 2 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 $240 cash. 3. Returned $440 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received an $280 allowance. 5. Sold merchandise that cost $2,590 for $13,800 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $200 cash 7. Paid $2.980 on the merchandise purchased in Event 1 8 Paid $8,750 cash for operating expenses. ! Required information Income Statement Balance Sheet Statement of Cash Flows Prepare an income statement. TERRY'S AUTO SHOP Income Statement For the Year Ended December 31, Year 2 Required information TERRY'S AUTO SHOP Balance Sheet As of December 31, Year 2 Assets Total assets Liabilities Total liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity