Andy's Autobody Shop has the following balances at the beginning of September: Cash, $10,000; Accounts Receivable, $1,450; Equipment, $40,000; Accounts Payable, $2,000; Common Stock, $20,000; and Retained Earnings, $29,450. Signed a lon -term note and received a $150,000 loan from a local bank. Billed a customer $2,000 for repair services just completed. Payment is expected in 45 days. On the last day of the month, wrote a check for $600 of rent for the current month. Received S 450 cash on account from a customer for work done last month. The company incurred $400 in advertising costs for the current month and is planning to pay these costs next month. Required: Prepare journal entries for the above transactions, which occurred during a recent month. Prepare an income statement. Prepare a statement f retained earnings. Prepare a classified balance sheet.

Andy's Autobody Shop has the following balances at the beginning of September: Cash, $10,000; Accounts Receivable, $1,450; Equipment, $40,000; Accounts Payable, $2,000; Common Stock, $20,000; and Retained Earnings, $29,450. Signed a lon -term note and received a $150,000 loan from a local bank. Billed a customer $2,000 for repair services just completed. Payment is expected in 45 days. On the last day of the month, wrote a check for $600 of rent for the current month. Received S 450 cash on account from a customer for work done last month. The company incurred $400 in advertising costs for the current month and is planning to pay these costs next month. Required: Prepare journal entries for the above transactions, which occurred during a recent month. Prepare an income statement. Prepare a statement f retained earnings. Prepare a classified balance sheet.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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a.
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