Andy\'s Autobody Shop has the following balances at the beginning of September:
ID: 2332956 • Letter: A
Question
Andy's Autobody Shop has the following balances at the beginning of September: Cash, $9,900; Accounts Receivable, $1,400; Equipment, $34,200; Accounts Payable, $2.,700; Common Stock, $20,000; and Retained Earnings, $22,800 a. Signed a long-term note and received a $83,500 loan from a local bank. b. Billed a customer $2,100 for repair services just completed. Payment is expected in 45 days. c Wrote a check for $860 of rent for the current month. d. Received $390 cash on account from a customer for work done last month. e. The company incurred $420 in advertising costs for the current month and is planning to pay these costs next month. Required 1. Prepare journal entries for the above transactions, which occurred during a recent month 2. Prepare an income statement. 3. Prepare a statement of retained earnings. 4. Prepare a classified balance sheet. Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4 Prepare journal entries for the above transactions, which occurred during a recent month. (If no entry is required for a transaction/levent, ,select."No Journal.Entry Reguired..in the first account .fieldExplanation / Answer
Answers
Cash
Accounts receivables
Equipment
Accounts payable
Notes Payable
Common Stock
Retained Earnings
Service revenue
Rent Expense
Advertising Expense
Beginning balance
$ 9,900.00
$ 1,400.00
$ 34,200.00
$ 2,700.00
$ 20,000.00
$ 22,800.00
a.
$ 83,500.00
$ 83,500.00
b.
$ 2,100.00
$ 2,100.00
c.
$ (860.00)
$ 860.00
d.
$ 390.00
$ (390.00)
e.
$ 420.00
$ 420.00
Ending Balances
$ 92,930.00
$ 3,110.00
$ 34,200.00
$ 3,120.00
$ 83,500.00
$ 20,000.00
$ 22,800.00
$ 2,100.00
$ 860.00
$ 420.00
Transaction
General Journal
Debit
Credit
a.
Cash
$ 83,500.00
Notes payable
$ 83,500.00
(Loan received after signing a note)
b.
Accounts receivables
$ 2,100.00
Service revenue
$ 2,100.00
(Customer billed for servcies performed)
c.
Rent Expenses
$ 860.00
Cash
$ 860.00
(Check issued for paying rent)
d.
Cash
$ 390.00
Accounts receivables
$ 390.00
(Cash received from customer earlier billed)
e.
Advertising expense
$ 420.00
Accounts Payable
$ 420.00
(expense due to be paid)
Income Statement
for the period ended 30 Sept
Revenues:
Service revenue
$ 2,100.00
Total Revenues
$ 2,100.00
Expenses:
Rent Expense
$ 860.00
Advertising Expense
$ 420.00
Total Expenses
$ 1,280.00
Net Income
$ 820.00
Statement of Retained earnings
for the period ended 30 Sept
Retained earnings Sept 1
$ 22,800.00
Add: Net Income
$ 820.00
Less: Dividends
$ -
Retained earnings Sept 30
$ 23,620.00
Balance Sheet
as at 30 Sept
ASSETS
Current Assets:
Cash
$ 92,930.00
Accounts receivables
$ 3,110.00
Total Current Assets
$ 96,040.00
Equipment
$ 34,200.00
Total Assets
$ 130,240.00
LIABILITIES
Current Liabilities:
Accounts payable
$ 3,120.00
Total Current Liabilities
$ 3,120.00
Notes Payable
$ 83,500.00
Total Liabilities
$ 86,620.00
STOCKHOLDERS' EQUITY
Common Stock
$ 20,000.00
Retained earnings (Sept 30)
$ 23,620.00
Total Stockholder's Equity
$ 43,620.00
Total Liabilities & Stockholder's Equity
$ 130,240.00
Cash
Accounts receivables
Equipment
Accounts payable
Notes Payable
Common Stock
Retained Earnings
Service revenue
Rent Expense
Advertising Expense
Beginning balance
$ 9,900.00
$ 1,400.00
$ 34,200.00
$ 2,700.00
$ 20,000.00
$ 22,800.00
a.
$ 83,500.00
$ 83,500.00
b.
$ 2,100.00
$ 2,100.00
c.
$ (860.00)
$ 860.00
d.
$ 390.00
$ (390.00)
e.
$ 420.00
$ 420.00
Ending Balances
$ 92,930.00
$ 3,110.00
$ 34,200.00
$ 3,120.00
$ 83,500.00
$ 20,000.00
$ 22,800.00
$ 2,100.00
$ 860.00
$ 420.00