On September 1, 201X, Dan Potter opened an auto repair shop. Here is his chart of accounts:

Assets	Liabilities	Equity
101	Cash	201	Accounts Payable	301	Dan Potter, Capital
102	Accounts Receivable	302	Dan Potter, Withdrawals
103	Shop Supplies	401	Repair Fees
104	Prepaid Rent	501	Training Expense
105	Tools & Equipment	502	Rent Expense
106	Accumulated Dep. Tools	503	Gas Expense
107	Vehicles	504	Wage Expense
108	Accumulated Dep Vehicles	505	Depreciation Expense
506	Wage Expense
507	Telephone Expense
508	Advertising Expense
509	Misc. Expense

The following transactions were completed for the month of September:

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2021

September 1 – Dan Potter invested $13,000 in the auto repair shop along with $10,000 of tools and equipment

September 1 – Rented and paid 5 months’ rent in advance to Acres of Velvet Property Management, $10,000.

September 1 – Bought a truck on account from Mcfly’s Toyota Fort Worth, $17,000.

September 4 – Purchased equipment from Don’s Tool Shed, for cash, $550.

September 5 – Purchased additional equipment from Don’s Tool Shed, on account, $300.

September 6 – Replaced Engine and transmission for Kate Tyson, $9,000.

September 8 – Paid gas bill to Victor’s Gas Co., $55.

September 15 – Paid Joey Johnston, auto shop employee, $1,000.

September 17 – Completed repairs on Laura Lostseer’s 2020 Ferrari Portofino, $11,000, payment to be received October 8.

September 20 – Dan Potter withdrew $5,000 to pay personal expenses.

September 21 – Repaired Matthew Criss’s VW Bus, $6000.

Sep 22 – Paid Victor’s Gas Co for gas bill, $85.

Sep 24 – Paid Mcfly’s Toyota Fort Worth for shop supplies, $800.

September 30 - Paid Joey Johnston, auto shop employee, $1000.

September 30 – Paid Horizontical Mobile Inc September phone bill, $550.

September 30 – Received advertising bill for September, $800, from Nuts and Boldts Magazine. The bill is to be paid on Oct 2.

Required Work for September

1. Journalize transactions and post to ledger accounts.
2. Prepare a trial balance in the first two columns of the worksheet and complete the worksheet using the following adjustment data:
   1. One month’s rent had expired.
   2. An inventory shows $250 of shop supplies remaining.
   3. Depreciation on equipment, $260.
   4. Depreciation on vehicles, $510.
3. Prepare a September income statement, statement of owner’s equity, and balance sheet.
4. From the worksheet, journalize and post adjusting and closing entries (p. 3 of journal)
5. Prepare a post-closure trial balance.

During October, Dan’s Pretty Good Auto Repair completed these transactions:

October 1 – Purchased additional equipment from Don’s Tool Shed, $750.

October 2 – Paid Nuts and Boldts Magazine for September advertising, $800.

October 3 – Repaired Dorothy Little’s Mercury Sable, $7200.

October 6 – Paid gas bill to Victor’s Gas Co., $30.

October 8 – Finished extensive upgrades to Mac Alexander’s Cadillac Escalade, $20,000.

October 12 – Paid Perfectly Adequate Training LLC to send employees to mechanical training workshop, $550.

October 15 – Paid Joey Johnston, auto shop employee, $1000.

October 17 – Replaced the high-altitude battery and did a horn fluid flush in Montavious Montoya’s 1981 DeLorean, $2,400. Payment to be received on Nov 10.

October 18 – Put a refurbished 3.99L V7 engine in Josh Farmer’s 2007 Dodge Nitro, $3900.

October 22 – Sent a check to Scharich Charities for $105 to sponsor a local food bank. (This amount is not to be considered an advertising expense; it is a business expense and is posted to Misc. Expense)

October 24 – Purchased parts for company vehicles from Mcfly’s Toyota Fort Worth, $610.

October 28 – Dan Potter withdrew $2,100 from the business to pay personal expenses.

October 30 – Paid Joey Johnston, auto shop employee, $1000.

October 30 – Paid Horizontical Mobile phone bill, $550.

October 30 – Received advertising bill for October, $800, from Nuts and Boldts Magazine. The bill is to be paid on Nov 2.

Required Work for October:

1. Journalize transactions in a genera journal (p. 4) and post to ledger accounts.
2. Prepare a trial balance in the first two columns of a blank, fold-out worksheet located at the end of your textbook and complete the worksheet using the following adjustment data:
   1. One month’s rent had expired. Paid 5 months’ rent in advance on September 1, $10,000.
   2. An inventory shows $230 of shop supplies remaining.
   3. Depreciation on equipment, $190.
   4. Depreciation on vehicles, $300.
3. Prepare an October income statement, statement of owner’s equity, and balance sheet.
4. From the worksheet, journalize and post adjusting and closing entries (p. 6 of journal).
5. Prepare a post-closing trial balance.