Reference no: EM13381395
Jack Shellenkamp owns and manages a computer repair service, which had the following trial balance on December 31, 2010 (the end of the fiscal year). Byte Repair Service Trial Balance December 31, 2010Cash $8,000Accounts Receivable $15,000Parts Inventory $13,000Prepaid Rent $3,000Shop Equipment $21,000Accounts Payable $19,000Common Stock $30,000Retained Earnings $11,000 _______ ________ $60,000 $60,000Summarized transactions for January 2011were as follows:
1. Advertising costs paid in cash - $1000
2. Additional repair parts inventory acquired on account $4,000
3. Miscellaneous expenses paid in cash, $2,000
4. Cash collected from customers in payment of accounts receivable - $14,000
5.Cash paid to creditors for accounts payable due - $15,000
6. Repair parts used during January - $4,000 (hint: debit this to repair parts expense.)
7. Repair services performed during January for cash $6000, on account $9,000.
8. Wages for January, paid in cash - $3,000
9. Dividends during January were $3,000A. Open T accounts for each of the accounts listed in the trial balance, and enter the opening balances for 2011.B. Prepare journal entries to record each of the January transactions (omit explanations)C. Post the journal entries to the accounts in the ledger (Add accounts as needed)D. Prepare a trial balance as of January 31, 2011Note: Trial; balance totals $64,000