Andy's Autobody Shop has the following balances at the beginning of September: Cash, $11,200; Accounts Receivable, $1,100; Equipment, $40,500; Accounts Payable, $2,400; Common Stock, $20,000; and Retained Earnings, $30,400. a. Signed a long-term note and received a $100,100 loan from a local bank. b. Billed a customer $2,500 for repair services just completed. Payment is expected in 45 days. c. Wrote a check for $730 of rent for the current month. d. Received $480 cash on account from a customer for work done last month. e. The company incurred $400 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.
Andy's Autobody Shop has the following balances at the beginning of September: Cash, $11,200; Accounts Receivable, $1,100; Equipment, $40,500; Accounts Payable, $2,400; Common Stock, $20,000; and Retained Earnings, $30,400. a. Signed a long-term note and received a $100,100 loan from a local bank. b. Billed a customer $2,500 for repair services just completed. Payment is expected in 45 days. c. Wrote a check for $730 of rent for the current month. d. Received $480 cash on account from a customer for work done last month. e. The company incurred $400 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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