! 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 Inventory Common Stock Retained Earnings Total Debit $ 14,870 3,090 Credit $ 7,320 10,640 $ 17,960 $ 17,960 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,160. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $250 cash. 3. Returned $495 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received an $205 allowance. 5. Sold merchandise that cost $2,720 for $13,400 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $105 cash. 7. Paid $2,950 on the merchandise purchased in Event 1. 8. Paid $8,850 cash for operating expenses. c. Prepare 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. Income Statement Balance Sheet Statement of Cash Flows Prepare a statement of cash flows. (Assume that closing entries have been made.) (Cash outflows should be indicated with a minus sign.) TERRY'S AUTO SHOP Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flow from operating activities: Cash inflow from customers Cash outflow for inventory Cash outflow for expenses Net cash flow from operating activities $ 0 Cash flows from investing activities 0 Cash flows from financing activities 0 Net change in cash Plus: Beginning cash balance Ending cash balance $ 0 < Balance Sheet Statement of Cash Flows >
! 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 Inventory Common Stock Retained Earnings Total Debit $ 14,870 3,090 Credit $ 7,320 10,640 $ 17,960 $ 17,960 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,160. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $250 cash. 3. Returned $495 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received an $205 allowance. 5. Sold merchandise that cost $2,720 for $13,400 cash. 6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $105 cash. 7. Paid $2,950 on the merchandise purchased in Event 1. 8. Paid $8,850 cash for operating expenses. c. Prepare 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. Income Statement Balance Sheet Statement of Cash Flows Prepare a statement of cash flows. (Assume that closing entries have been made.) (Cash outflows should be indicated with a minus sign.) TERRY'S AUTO SHOP Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flow from operating activities: Cash inflow from customers Cash outflow for inventory Cash outflow for expenses Net cash flow from operating activities $ 0 Cash flows from investing activities 0 Cash flows from financing activities 0 Net change in cash Plus: Beginning cash balance Ending cash balance $ 0 < Balance Sheet Statement of Cash Flows >
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter16: Financial Statements And Closing Entries For A Corporation
Section: Chapter Questions
Problem 1CP
Related questions
Question
please step by step solution.
![!
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
Inventory
Common Stock
Retained Earnings
Total
Debit
$ 14,870
3,090
Credit
$ 7,320
10,640
$ 17,960
$ 17,960
The following events affected the company during the Year 2 accounting period:
1. Purchased merchandise on account that cost $4,160.
2. The goods in Event 1 were purchased FOB shipping point with freight cost of $250 cash.
3. Returned $495 of damaged merchandise for credit on account.
4. Agreed to keep other damaged merchandise for which the company received an $205 allowance.
5. Sold merchandise that cost $2,720 for $13,400 cash.
6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $105 cash.
7. Paid $2,950 on the merchandise purchased in Event 1.
8. Paid $8,850 cash for operating expenses.
c. Prepare 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.
Income
Statement
Balance Sheet
Statement of
Cash Flows
Prepare a statement of cash flows. (Assume that closing entries have been made.) (Cash outflows should be indicated with a
minus sign.)
TERRY'S AUTO SHOP
Statement of Cash Flows
For the Year Ended December 31, Year 2
Cash flow from operating activities:
Cash inflow from customers
Cash outflow for inventory
Cash outflow for expenses
Net cash flow from operating activities
$
0
Cash flows from investing activities
0
Cash flows from financing activities
0
Net change in cash
Plus: Beginning cash balance
Ending cash balance
$
0
< Balance Sheet
Statement of Cash Flows >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2e0671d2-c5a3-44d0-805b-c674c3a57392%2F6bd888d9-ab5e-429a-92ba-04acce11c042%2F2cn93k6_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
Inventory
Common Stock
Retained Earnings
Total
Debit
$ 14,870
3,090
Credit
$ 7,320
10,640
$ 17,960
$ 17,960
The following events affected the company during the Year 2 accounting period:
1. Purchased merchandise on account that cost $4,160.
2. The goods in Event 1 were purchased FOB shipping point with freight cost of $250 cash.
3. Returned $495 of damaged merchandise for credit on account.
4. Agreed to keep other damaged merchandise for which the company received an $205 allowance.
5. Sold merchandise that cost $2,720 for $13,400 cash.
6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $105 cash.
7. Paid $2,950 on the merchandise purchased in Event 1.
8. Paid $8,850 cash for operating expenses.
c. Prepare 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.
Income
Statement
Balance Sheet
Statement of
Cash Flows
Prepare a statement of cash flows. (Assume that closing entries have been made.) (Cash outflows should be indicated with a
minus sign.)
TERRY'S AUTO SHOP
Statement of Cash Flows
For the Year Ended December 31, Year 2
Cash flow from operating activities:
Cash inflow from customers
Cash outflow for inventory
Cash outflow for expenses
Net cash flow from operating activities
$
0
Cash flows from investing activities
0
Cash flows from financing activities
0
Net change in cash
Plus: Beginning cash balance
Ending cash balance
$
0
< Balance Sheet
Statement of Cash Flows >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College