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Typewritten answers only, please, no handwritten answers. Thank you. The beginning account balances for Terry’s Auto...

Typewritten answers only, please, no handwritten answers. Thank you.

The beginning account balances for Terry’s Auto Shop as of January 1, 2018, follows:

Account Titles Beginning Balances
Cash $ 6,040
Inventory 3,180
Common Stock 7,430
Retained Earnings 1,790

The following events affected the company during the 2018 accounting period:

Purchased merchandise on account that cost $4,260.

The goods in Event 1 were purchased FOB shipping point with freight cost of $285 cash.

Returned $420 of damaged merchandise for credit on account.

Agreed to keep other damaged merchandise for which the company received an $265 allowance.

Sold merchandise that cost $2,600 for $4,840 cash.

Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $115 cash.

Paid $2,990 on the merchandise purchased in Event 1.

Organize appropriate ledger accounts under an accounting equation. Record the beginning balances and the transaction data in the accounts. In the last column of the table, provide appropriate account titles for the Retained Earnings amounts. (Enter any decreases to account balances with a minus sign. Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings".)
TERRY’S AUTO SHOP
Effect of Events on the Financial Statements
Assets = Liabilities + Stockholders’ Equity
Events Cash + Inventory = Accounts Payable + Common Stock + Retained Earnings Accounts Titles for Retained Earnings
Beg. Bal. + = + + NA
1. + = + +
2. + = + +
3. + = + +
4. + = + +
5a. + = + +
5b. + = + +
6. + = + +
7. + = + +
End Bal. 0 + 0 = 0 + 0 + 0

Typewritten answers only, please, no handwritten answers. Thank you.
Business   Accounting   
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Answer #1
TERRY’S AUTO SHOP
Effect of Events on the Financial Statements
Assets = Liabilities + Stockholders’ Equity
Events Cash + Inventory = Accounts Payable + Common Stock + Retained Earnings Accounts Titles for Retained Earnings
Beg. Bal. 6040 + 3180 = + 7430 + 1790 NA
1 -285 + 4260 = 4260 + na + -285 payment for freight
2 na + -420 = -420 + +
3 265 + = + + 265 credit allowance received
4 4840 + -2600 = + + 2240 sale of goods for profit
5a. -115 + = + + -115 freight charges on sale
5b. -2990 + = -2990 + + -2990 part settlement of purchase in event 1
End Bal. 7755 + 4420 = 3840 + 7430 + 905
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