Andy's Autobody Shop has the following balances at the beginning of September: Cash, $10,400; Accounts Receivable,...

 

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Andy's Autobody Shop has the following balances at the beginning of September: Cash, $10,400; Accounts Receivable, $1,200; Equipment, $36,500; Accounts Payable, $2,300; Common Stock, $20,000; and Retained Earnings, $25,800. a. Signed a long-term note and received a $99,200 loan from a local bank. b. Billed a customer $2,600 for repair services just completed. Payment is expected in 45 days. c. Wrote a check for $760 of rent for the current month. d. Received $420 cash on account from a customer for work done last month. e. The company incurred $420 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, $10,400; Accounts Receivable, $1,200; Equipment, $36,500; Accounts Payable, $2,300; Common Stock, $20,000; and Retained Earnings, $25,800. a. Signed a long-term note and received a $99,200 loan from a local bank. b. Billed a customer $2,600 for repair services just completed. Payment is expected in 45 days. c. Wrote a check for $760 of rent for the current month. d. Received $420 cash on account from a customer for work done last month. e. The company incurred $420 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.

Answer rating: 100% (QA)

1 Journal Entries Date Account Debit Credit Beginning Balances 20230901 Cash 10400 Accounts Receivab... View the full answer