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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faa00ebaa-23b9-4b28-a7ce-1aeaaf3b9d34%2Fcc94179b-fbfe-4f69-bf96-9b9a251b220b%2Fzbr652p_processed.png&w=3840&q=75)
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.
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