M3-17 (Algo) Preparing Accrual Basis Journal Entries and Reporting Financial Statements [LO 3-3]
Andy's Autobody Shop has the following balances at the beginning of September: Cash, $11,800; Accounts Receivable, $1,200;
Equipment, $38,200; Accounts Payable, $2,300; Common Stock, $20,000; and Retained Earnings, $28,900.
a. Signed a long-term note and received a $101,100 loan from a local bank.
b. Billed a customer $2,400 for repair services just completed. Payment is expected in 45 days.
c. Wrote a check for $770 of rent for the current month.
d. Received $470 cash on account from a customer for work done last month.
e. The company incurred $410 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 Required 4
Prepare an income statement.
ANDY'S AUTOBODY SHOP
Income Statement
For the month ended September 30
Revenues
