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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 Total Debit $ 14,870 3,090 Credit $ 7,320 10,640 $ 17,960 $ 17,960 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,160. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $250 cash. 3. Returned $495 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received an $205 allowance. 5. Sold merchandise that cost $2,720 for $13,400 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $105 cash. 7. Paid $2,950 on the merchandise purchased in Event 1. 8. Paid $8,850 cash for operating expenses. c. Prepare a multistep income statement, balance sheet, and statement of cash flows. (Assume that closing entries have been made.) Answer is not complete. Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Statement of Cash Flows Prepare a statement of cash flows. (Assume that closing entries have been made.) (Cash outflows should be indicated with a minus sign.) TERRY'S AUTO SHOP Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flow from operating activities: Cash inflow from customers Cash outflow for inventory Cash outflow for expenses Net cash flow from operating activities $ 0 Cash flows from investing activities 0 Cash flows from financing activities 0 Net change in cash Plus: Beginning cash balance Ending cash balance $ 0 < Balance Sheet Statement of Cash Flows >

! 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 Total Debit $ 14,870 3,090 Credit $ 7,320 10,640 $ 17,960 $ 17,960 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,160. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $250 cash. 3. Returned $495 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received an $205 allowance. 5. Sold merchandise that cost $2,720 for $13,400 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $105 cash. 7. Paid $2,950 on the merchandise purchased in Event 1. 8. Paid $8,850 cash for operating expenses. c. Prepare a multistep income statement, balance sheet, and statement of cash flows. (Assume that closing entries have been made.) Answer is not complete. Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Statement of Cash Flows Prepare a statement of cash flows. (Assume that closing entries have been made.) (Cash outflows should be indicated with a minus sign.) TERRY'S AUTO SHOP Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flow from operating activities: Cash inflow from customers Cash outflow for inventory Cash outflow for expenses Net cash flow from operating activities $ 0 Cash flows from investing activities 0 Cash flows from financing activities 0 Net change in cash Plus: Beginning cash balance Ending cash balance $ 0 < Balance Sheet Statement of Cash Flows >

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 Total Debit $ 14,870 3,090 Credit $ 7,320 10,640 $ 17,960 $ 17,960 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,160. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $250 cash. 3. Returned $495 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received an $205 allowance. 5. Sold merchandise that cost $2,720 for $13,400 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $105 cash. 7. Paid $2,950 on the merchandise purchased in Event 1. 8. Paid $8,850 cash for operating expenses. c. Prepare a multistep income statement, balance sheet, and statement of cash flows. (Assume that closing entries have been made.) Answer is not complete. Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Statement of Cash Flows Prepare a statement of cash flows. (Assume that closing entries have been made.) (Cash outflows should be indicated with a minus sign.) TERRY'S AUTO SHOP Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flow from operating activities: Cash inflow from customers Cash outflow for inventory Cash outflow for expenses Net cash flow from operating activities $ 0 Cash flows from investing activities 0 Cash flows from financing activities 0 Net change in cash Plus: Beginning cash balance Ending cash balance $ 0 < Balance Sheet Statement of Cash Flows >
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 Total Debit $ 14,870 3,090 Credit $ 7,320 10,640 $ 17,960 $ 17,960 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,160. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $250 cash. 3. Returned $495 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received an $205 allowance. 5. Sold merchandise that cost $2,720 for $13,400 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $105 cash. 7. Paid $2,950 on the merchandise purchased in Event 1. 8. Paid $8,850 cash for operating expenses. c. Prepare a multistep income statement, balance sheet, and statement of cash flows. (Assume that closing entries have been made.) Answer is not complete. Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Statement of Cash Flows Prepare a statement of cash flows. (Assume that closing entries have been made.) (Cash outflows should be indicated with a minus sign.) TERRY'S AUTO SHOP Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flow from operating activities: Cash inflow from customers Cash outflow for inventory Cash outflow for expenses Net cash flow from operating activities $ 0 Cash flows from investing activities 0 Cash flows from financing activities 0 Net change in cash Plus: Beginning cash balance Ending cash balance $ 0 < Balance Sheet Statement of Cash Flows >
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