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An auto- body repair shop has been in business for 23 years. Prepare journal entries for the following transactions, which occurred during a recent month, and determine the auto- body shop's preliminary net income.
a. Signed a long- term note and received a $ 150,000 loan from a local bank.
b. Billed a customer $ 2,000 for repair services just completed. Payment is expected in 45 days.
c. Wrote a check for $ 600 of rent for the current month.
d. Received $ 450 cash from a customer for work done the same day.
e. The company incurred $ 400 in advertising costs for the current month and is planning to pay these costs next month.
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