the norton x un Homework (LO4-1, 4-2,4- xo Homework (LO4-1, 4-2, 4-4,4-6) 4 Part
ID: 2336262 • Letter: T
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the norton x un Homework (LO4-1, 4-2,4- xo Homework (LO4-1, 4-2, 4-4,4-6) 4 Part 1 of 3 The following information applies to the questions displayed below.) The beginning account balances for Terry's Auto Shop as of January 1, Year 2, follows: 14.28 points $16,000 8,000 20,000 4,000 Hint The following events affected the company during the Year 2 accounting period: 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 received 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. Paid $8,000 on the merchandise purchased in Event 1 Required 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 Prey 4 56 of 7ll Next >Explanation / Answer
TERRY'S AUTO SHOP Effects of events on Financial statements Month ended December 31,2019 Assets = Liabilities Stockholders Equity Events Cash + Inventory = Accounts Payable + Common stock + Retained Earnings Account Titles for retained earnings Beg.bal. $16,000.00 + $8,000.00 = + $20,000.00 + $4,000.00 NA 1 + $15,000.00 = $15,000.00 + + NA 2 -$800.00 + = + + -$800.00 Fright Inward 3 + -$2,600.00 = -$2,600.00 + + NA 4 + = -$1,100.00 + + $1,100.00 Purchase Discount 5a $31,000.00 + = + + $31,000.00 Sales 5b + -$15,000.00 = + + -$15,000.00 Cost of goods sold 6 -$500.00 + = + + -$500.00 Fright Outward 7 -$8,000.00 + = -$8,000.00 + + NA End.bal. $37,700.00 + $5,400.00 = $3,300.00 + $20,000.00 + $19,800.00 + = + +
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