[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 Debit $14,560 3,060 Credit $ 7,470 10,150 $17,620 $17,620 Retained Earnings Total 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.
[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 Debit $14,560 3,060 Credit $ 7,470 10,150 $17,620 $17,620 Retained Earnings Total 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.
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
Debit
$14,560
3,060
Credit
Inventory
Common Stock
Retained Earnings
$ 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbac5cd56-9885-4a25-8e51-dfc1bb78a29e%2Ff781bb89-2b5c-4faf-ba94-a37afcd26d88%2Fu9gaig5_processed.jpeg&w=3840&q=75)
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
Debit
$14,560
3,060
Credit
Inventory
Common Stock
Retained Earnings
$ 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.
Transcribed Image Text:Statement of
Cash Flows
Income
Balance Sheet
Statement
Prepare an income statement.
TERRY'S AUTO SHOP
Income Statement
For the Year Ended December 31, Year 2
Balance Sheet >
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