An auto-body repair shop has been in business for 23 years. Prepare journal entries for the following transactions, which occurred during a recent month, and determine the auto-body shop’spreliminary net income.a. Signed a long-term note and received a $150,000 loan from a local bank.b. Billed a customer $2,000 for repair services just completed. Payment is expected in 45 days.c. Wrote a check for $600 of rent for the current month.d. Received $450 cash from a customer for work done the same day.e. The company incurred $400 in advertising costs for the current month and is planning to paythese costs next month
An auto-body repair shop has been in business for 23 years. Prepare journal entries for the following transactions, which occurred during a recent month, and determine the auto-body shop’spreliminary net income.a. Signed a long-term note and received a $150,000 loan from a local bank.b. Billed a customer $2,000 for repair services just completed. Payment is expected in 45 days.c. Wrote a check for $600 of rent for the current month.d. Received $450 cash from a customer for work done the same day.e. The company incurred $400 in advertising costs for the current month and is planning to paythese costs next month
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An auto-body repair shop has been in business for 23 years. Prepare
preliminary net income.
a. Signed a long-term note and received a $150,000 loan from a local bank.
b. Billed a customer $2,000 for repair services just completed. Payment is expected in 45 days.
c. Wrote a check for $600 of rent for the current month.
d. Received $450 cash from a customer for work done the same day.
e. The company incurred $400 in advertising costs for the current month and is planning to pay
these costs next month
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