Transactions:

September 1 - Dan Porter invested $12,000 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, $6,000
September 22 - Paid Victor's Gas Co for gas bill, $85
September 24 - Paid Mcfly's Toyota Fort Worth for shop supplies, $900
September 30 - Paid Joey Johnston, auto shop employee, $1,000
September 30 - Paid Horizontal Mobile Inc September phone bill, $550
September 30 - Received advertising bill for September, $800, from Nuts and Boldt's Magazine. Bill is to be paid Oct 2

Prepare a trial balance in a 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.
 

Transcribed Image Text:

On September 1, 201X, Dan Potter opened an auto repair shop. Here is his chart of accounts: Liabilities Equity 201 301 302 Assets 101 102 103 104 105 106 107 108 Cash Accounts Receivable Shop Supplies Prepaid Rent Tools & Equipment Accumulated Dep. Tools Vehicles Accumulated Dep Vehicles Accounts Payable 401 501 502 503 504 505 506 507 508 509 Dan Potter, Capital Dan Potter, Withdrawals Repair Fees Training Expense Rent Expense Gas Expense Wage Expense Depreciation Expense Wage Expense Telephone Expense Advertising Expense Misc. Expense On September 1, 201X, Dan Potter opened an auto repair shop. Here is his chart of accounts: Liabilities Equity 201 301 302 Assets 101 102 103 104 105 106 107 108 Cash Accounts Receivable Shop Supplies Prepaid Rent Tools & Equipment Accumulated Dep. Tools Vehicles Accumulated Dep Vehicles Accounts Payable 401 501 502 503 504 505 506 507 508 509 Dan Potter, Capital Dan Potter, Withdrawals Repair Fees Training Expense Rent Expense Gas Expense Wage Expense Depreciation Expense Wage Expense Telephone Expense Advertising Expense Misc. Expense

Answer rating: 100% (QA)

To prepare a trial balance and complete the worksheet well start by listing the accounts and their balances based on the given transactions Then well make adjustments for the adjustment data provided ... View the full answer