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Bobby Hooks, licensed master plumber, had the following transactions and events during his first month of business. Prepare journal entries to record them. After you have prepared the journal entries, scan the accounts, and state which ones you would use to determine Bobby net profit for the month.1. Purchased a truck for $ 24,000. He paid $ 4,000 in cash and signed a note for the rest.2. Purchased, on credit, copper pipes and a variety of other items for use in repair jobs at a cost of $ 3,500. He recorded these items as Supplies inventory.3. Billed customers $ 6,000 for work done during the month.4. Paid $ 1,500 in salary to a young apprentice plumber.5. Estimated that $ 1,200 of supplies was used in performing repair jobs.6. Paid the $ 3,500 invoice in transaction 2.7. Received $ 5,300 from collections of accounts receivable.8. At month- end, owed $ 200 salary to his apprentice plumber.
Calculate a value in response to the following: Unhappy about the prospect of a price increase, Blake's sales manager would like data regarding the number of units that must be sold at the former price to earn the £200,000 profit.
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