FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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![Required Information
he folowing iaformation applies to the questions displayed beow]
The beginning account balances for Tery's Auto Shop as of January 1, Year 2. follow
7ASINK
Tmmkng BaABOEN
$16.000
Inventony
Commn Steck
Bebained Eaxnings
8,000
20,000
4,000
The followtng events affected the company durtng the Year 2 accounting pertod
1 Purchased merchandise on account that cost $15,00.
2. The goods in Event 1 were purchased FOB shipping polnt with fretght cost of $800 cash.
3. Returned $2,600 of damaged merchandise for credit on account
4. Agreed to keep other damaged merchandise for which the company recetved a $1,100 allowance.
5. Sold merchandise that cost $15,000 for $31,000 cash.
6. Delivered merchandise to customers In Event 5 under terms FOB destination with freight costs amounting to $500
cash
7. Pald $8,000 on the merchandise purchased in Event 1.
Required
a. Organtze 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 approprlate account titles for the Retalned Earnings amounts. (Enter any
decreases to account balances with a minus sign. If there Is no effect on the Accounts Titles for Retalned Earnings, leave the
cell blank. Not every cell wll requlre entry.)
TERRY'S AUTO SHOP
Effect of Events on the Financial Statements
Stockholders' Equity
- Liabilities +
Accounts Titles for Retained
Earnings
Assets
Accounts Common
Payable
Retained
Earnings
Cash
Inventory
Stock
+]
Events
Beg Bal
2.
3.
4.
5b
6.
7.
Next >
80
End Bal
567 of 8
< Prev](https://content.bartleby.com/qna-images/question/80998f00-6fe5-4524-a68f-93f247b136b5/4d784269-3de3-47d6-99cb-a5c908f42d54/akpkibn_processed.jpeg)
Transcribed Image Text:Required Information
he folowing iaformation applies to the questions displayed beow]
The beginning account balances for Tery's Auto Shop as of January 1, Year 2. follow
7ASINK
Tmmkng BaABOEN
$16.000
Inventony
Commn Steck
Bebained Eaxnings
8,000
20,000
4,000
The followtng events affected the company durtng the Year 2 accounting pertod
1 Purchased merchandise on account that cost $15,00.
2. The goods in Event 1 were purchased FOB shipping polnt with fretght cost of $800 cash.
3. Returned $2,600 of damaged merchandise for credit on account
4. Agreed to keep other damaged merchandise for which the company recetved a $1,100 allowance.
5. Sold merchandise that cost $15,000 for $31,000 cash.
6. Delivered merchandise to customers In Event 5 under terms FOB destination with freight costs amounting to $500
cash
7. Pald $8,000 on the merchandise purchased in Event 1.
Required
a. Organtze 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 approprlate account titles for the Retalned Earnings amounts. (Enter any
decreases to account balances with a minus sign. If there Is no effect on the Accounts Titles for Retalned Earnings, leave the
cell blank. Not every cell wll requlre entry.)
TERRY'S AUTO SHOP
Effect of Events on the Financial Statements
Stockholders' Equity
- Liabilities +
Accounts Titles for Retained
Earnings
Assets
Accounts Common
Payable
Retained
Earnings
Cash
Inventory
Stock
+]
Events
Beg Bal
2.
3.
4.
5b
6.
7.
Next >
80
End Bal
567 of 8
< Prev
![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.
Beginning BalanceS
$16, 000
8,000
20, 000
4, 000
Account Titles
Cash
Inventory
Common Stock
Retained Earnings
The following events affected the company during the Year 2 accounting perlod:
1. Purchased merchandise on account that cost $15,000,
2. The goods In Event 1 were purchased FOB shipping point with freight cost of $800 cash.
3. Returned $2,600 of damaged merchandise for credit on account.
4. Agreed to keep other damaged merchandise for which the company recelved a $1,100 allowance.
5. Sold merchandise that cost $15,000 for $31,000 cash.
6. Delivered merchandise to customers In Event 5 under terms FOB destination with frelght costs amounting to $500
cash.
7. Pald $8,000 on the merchandise purchased in Event 1.
Requlred
a. 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. If there Is no effect on the Accounts Titles for Retalned Earnings, leave the
cell blank. Not every cell will requlre entry.)
TERRY'S AUTO SHOP
Effect of Events on the Financial Statements
Assets
- Liabilities +
Stockholders' Equity
Accounts
Payable
Common Retained
Stock
Accounts Titles for Retained
Earnings
Events
Cash
Inventory
Earnings
Beg. Bal.
1.
+
2.
3.
4.
5a,
5b.
6.
7.
End Bal.](https://content.bartleby.com/qna-images/question/80998f00-6fe5-4524-a68f-93f247b136b5/4d784269-3de3-47d6-99cb-a5c908f42d54/vodmzkh_processed.jpeg)
Transcribed Image Text: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.
Beginning BalanceS
$16, 000
8,000
20, 000
4, 000
Account Titles
Cash
Inventory
Common Stock
Retained Earnings
The following events affected the company during the Year 2 accounting perlod:
1. Purchased merchandise on account that cost $15,000,
2. The goods In Event 1 were purchased FOB shipping point with freight cost of $800 cash.
3. Returned $2,600 of damaged merchandise for credit on account.
4. Agreed to keep other damaged merchandise for which the company recelved a $1,100 allowance.
5. Sold merchandise that cost $15,000 for $31,000 cash.
6. Delivered merchandise to customers In Event 5 under terms FOB destination with frelght costs amounting to $500
cash.
7. Pald $8,000 on the merchandise purchased in Event 1.
Requlred
a. 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. If there Is no effect on the Accounts Titles for Retalned Earnings, leave the
cell blank. Not every cell will requlre entry.)
TERRY'S AUTO SHOP
Effect of Events on the Financial Statements
Assets
- Liabilities +
Stockholders' Equity
Accounts
Payable
Common Retained
Stock
Accounts Titles for Retained
Earnings
Events
Cash
Inventory
Earnings
Beg. Bal.
1.
+
2.
3.
4.
5a,
5b.
6.
7.
End Bal.
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