Question
the following information applies to the questions displayed below.] The trial balance for Terrys Auto Shop as of January 1, Year 2, follows: Account Titles
the following information applies to the questions displayed below.]
The trial balance for Terrys Auto Shop as of January 1, Year 2, follows:
Account Titles | Debit | Credit | ||||
Cash | $ | 14,760 | ||||
Inventory | 3,170 | |||||
Common Stock | $ | 7,310 | ||||
Retained Earnings | 10,620 | |||||
Total | $ | 17,930 | $ | 17,930 | ||
The following events affected the company during the Year 2 accounting period:
Purchased merchandise on account that cost $4,140.
The goods in Event 1 were purchased FOB shipping point with freight cost of $215 cash.
Returned $405 of damaged merchandise for credit on account.
Agreed to keep other damaged merchandise for which the company received an $250 allowance.
Sold merchandise that cost $2,630 for $13,000 cash.
Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $150 cash.
Paid $2,840 on the merchandise purchased in Event 1.
Paid $8,600 cash for operating expenses.
b. Open general ledger T-accounts with the appropriate beginning balances, and post the journal entries to the T-accounts.
Cash Accounts Payable Beg. Ba Beg. Ba End. Bal End. Bal Merchandise Inventory Common Stock Beg. Ba Beg. Ba End. Bal End. Bal
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