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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 long
-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 $
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 of retained earnings. Prepare a classified balance sheet.
Transcribed Image Text: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 long -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 $ 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 of retained earnings. Prepare a classified balance sheet.
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