Required information [The following information applies to the questions displayed below.] The beginning account balances for Terry's Auto Shop as of January 1, Year 2, follow: Account Titles Beginning Balances Cash Inventory Common Stock Retained Earnings $ 6,170 3,100 7,390 1,880 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,180. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $215 cash. 3. Returned $400 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received a $205 allowance. 5. Sold merchandise that cost $2,670 for $4,770 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $200 cash. 7. Paid $2,890 on the merchandise purchased in Event 1. b. Prepare an income statement and a statement of cash flows for Year 2. (Assume that closing entries have been made.) Complete this question by entering your answers in the tabs below. Income Statement Statement of Cash Flows
Required information [The following information applies to the questions displayed below.] The beginning account balances for Terry's Auto Shop as of January 1, Year 2, follow: Account Titles Beginning Balances Cash Inventory Common Stock Retained Earnings $ 6,170 3,100 7,390 1,880 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,180. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $215 cash. 3. Returned $400 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received a $205 allowance. 5. Sold merchandise that cost $2,670 for $4,770 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $200 cash. 7. Paid $2,890 on the merchandise purchased in Event 1. b. Prepare an income statement and a statement of cash flows for Year 2. (Assume that closing entries have been made.) Complete this question by entering your answers in the tabs below. Income Statement Statement of Cash Flows
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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