The beginning account balances for Terry's Auto Shop as of January 1. Year 2, follow:...
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Accounting
The beginning account balances for Terry's Auto Shop as of January 1. Year 2, follow:
Account Titles Beginning balances
Cash $6,100
Inventory 3,050
Common Stock 7,420
Retained Earnings 1,730
The following events affected the company during the Year 2 accounting period:
Purchased merchandise on account that cost $4.130.
The goods in Event 1 were purchased FOB shipping point with transportation cost of $215 cash
Returned $420 of damaged merchandise
Agreed to keep other damaged merchandise for which the company received a $230 allowance.
Sold merchandise that cost $2.560 for $4,800 cash.
Delivered merchandise to customers in Event 5 under terms FOB destination with transportation costs amounting to $175 cash.
Paid $2.850 on the merchandise purchased in Event 1.
Required:
a. Organize appropriate accounts under an adcounting equation. Record the beginning balances and the transaction data in the accounts. In the last column of the table, provide appropriate input neededs for the Retained Earnings amounts.
Note: Enter any decreases to account balances with a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input - leave cells blank if there is no corresponding Retained Earnings input needed.
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