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Account Titles Cash Inventory Common Stock Retained Earnings Debit $14,560 3,060 Credit $ 7,470 10,150 Total $17,620 $17, 620 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,170. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $255 cash. 3. Returned $480 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 $2,730 for $13,100 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $170 cash. 7. Paid $2,830 on the merchandise purchased in Event 1. 8. Paid $8,540 cash for operating expenses.

Account Titles Cash Inventory Common Stock Retained Earnings Debit $14,560 3,060 Credit $ 7,470 10,150 Total $17,620 $17, 620 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,170. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $255 cash. 3. Returned $480 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 $2,730 for $13,100 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $170 cash. 7. Paid $2,830 on the merchandise purchased in Event 1. 8. Paid $8,540 cash for operating expenses.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information [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 Cash Inventory Common Stock Retained Earnings Debit Credit $14,560 3,060 $ 7,470 10,150 Total $17,620 $17,620 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,170. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $255 cash. 3. Returned $480 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 $2,730 for $13,100 cash. 6. Delivered merchandise 7. Paid $2,830 on the merchandise purchased in Event 1. 8. Paid $8,540 cash for operating expenses. customers in Event 5 under terms FOB destination with freight costs amounting to $170 cash.
Transcribed Image Text:Required information [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 Cash Inventory Common Stock Retained Earnings Debit Credit $14,560 3,060 $ 7,470 10,150 Total $17,620 $17,620 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,170. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $255 cash. 3. Returned $480 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 $2,730 for $13,100 cash. 6. Delivered merchandise 7. Paid $2,830 on the merchandise purchased in Event 1. 8. Paid $8,540 cash for operating expenses. customers in Event 5 under terms FOB destination with freight costs amounting to $170 cash.
2 of 4 b. Open general ledger T-accounts with the appropriate beginning balances, and post the journal entries to the T-accounts. Cash Accounts Payable Beg. Bal Beg. Bal eBook End. Bal End. Bal Hint Merchandise Inventory Common Stock Beg. Bal Beg. Bal Print eferences End. Bal End. Bl Retained Earnings Sales Revenue |Вeg. Bal Beg, Bal End. Bal End, Bal
Transcribed Image Text:2 of 4 b. Open general ledger T-accounts with the appropriate beginning balances, and post the journal entries to the T-accounts. Cash Accounts Payable Beg. Bal Beg. Bal eBook End. Bal End. Bal Hint Merchandise Inventory Common Stock Beg. Bal Beg. Bal Print eferences End. Bal End. Bl Retained Earnings Sales Revenue |Вeg. Bal Beg, Bal End. Bal End, Bal
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