ewaedsrrrrrr The trial balance for Terry's Auto Shop as of January 1, Year 2, follows:Account TitlesCashInventoryCommon StockRetained EarningsTotalDebit$ 15,000Credit3,060$ 7,45010,610$ 18,060$ 18,060The 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 $240 cash.3. Returned $410 of damaged merchandise for credit on account.4. Agreed to keep other damaged merchandise for which the company received on $210 allowance.5. Sold merchandise that cost $2,570 for $13,100 cash.6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $155 cash.7. Paid $2,910 on the merchandise purchased in Event 1.8. Paid $8,930 cash for operating expenses.ercise 4-12A (Algo) Part crepare a multistep income statement, balance sheet, and statement of cash flows. (Assume that closing entries have been made.)Answer is not complete.Complete this question by entering your answers in the tabs below.IncomeStatementBalance SheetStatement ofCash Flowsepare a statement of cash flows. (Assume that closing entries have been made.) (Cash outflows should be indicated with ainus sign.)TERRY'S AUTO SHOPStatement of Cash FlowsFor the Year Ended December 31, Year 2sh flow from operating activities:Cash inflow from customersCash outflow for inventoryCash outflow for expensescash flow from operating activitiessh flows from investing activitiessh flows from financing activitieschange in cashs: Beginning cash balanceding cash balance$ 13,1003,060(9,085)$ 7,07500< Balance Sheet7,07515,000$ 22,075Stainment of Cash Flows >

Financial Statements:Financial Statements consist of an income statement, Balance sheet, cash flows…

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 $ 15,000 Credit 3,060 $ 18,060 $ 7,450 10,610 $ 18,060 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 $240 cash. 3. Returned $410 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received on $210 allowance. 5. Sold merchandise that cost $2,570 for $13,100 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $155 cash. 7. Paid $2,910 on the merchandise purchased in Event 1. 8. Paid $8,930 cash for operating expenses.

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 $ 15,000 Credit 3,060 $ 18,060 $ 7,450 10,610 $ 18,060 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 $240 cash. 3. Returned $410 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received on $210 allowance. 5. Sold merchandise that cost $2,570 for $13,100 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $155 cash. 7. Paid $2,910 on the merchandise purchased in Event 1. 8. Paid $8,930 cash for operating expenses.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter9: Sales And Purchases

Section: Chapter Questions

Problem 5PA: Gomez Company sells electrical supplies on a wholesale basis. The balances of the accounts as of...

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