Andy's Autobody Shop has the following balances at the beginning of September: Cash, $9,800, Accounts Receivable, $1,300, Equipment, $44,900, Accounts Payable. $2,100: Common Stock, $20.000; and Retained Earnings, $33,900. a Signed a long-term note and received a $123.800 loan from a local bank. b. Billed a customer $2.300 for repair services just completed. Payment is expected in 45 days. c. Wrote a check for $740 of rent for the current month. d. Received $360 cash on account from a customer for work done last month. e. The company incurred $350 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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Andy's Autobody Shop has the following balances at the beginning of September, Cash, $9,800, Accounts Receivable. $1,300.
Equipment, $44,900; Accounts Payable, $2,100. Common Stock, $20,000, and Retained Earnings, $33,900.
a. Signed a long-term note and received a $123.800 loan from a local bank.
b. Billed a customer $2,300 for repair services just completed. Payment is expected in 45 days.
c Wrote a check for $740 of rent for the current month.
d. Received $360 cash on account from a customer for work done last month.
e. The company incurred $350 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
Prepare a classified balance sheet.
Current Assets
Cash
Required 4
ANDY'S AUTOBODY SHOP
Balance Sheet
For the month ended September 30
Assets
0
Transcribed Image Text:Andy's Autobody Shop has the following balances at the beginning of September, Cash, $9,800, Accounts Receivable. $1,300. Equipment, $44,900; Accounts Payable, $2,100. Common Stock, $20,000, and Retained Earnings, $33,900. a. Signed a long-term note and received a $123.800 loan from a local bank. b. Billed a customer $2,300 for repair services just completed. Payment is expected in 45 days. c Wrote a check for $740 of rent for the current month. d. Received $360 cash on account from a customer for work done last month. e. The company incurred $350 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 Prepare a classified balance sheet. Current Assets Cash Required 4 ANDY'S AUTOBODY SHOP Balance Sheet For the month ended September 30 Assets 0
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