Question 7 Jack Shellenkamp owns and manages a computer repair service, which ha

Question

Question 7 Jack Shellenkamp owns and manages a computer repair service, which had the following trial balance on December 31, 2009 (the end of its fiscal year). BYTE REPAIR SERVICE Trial Balance December 31, 2009 Cash $8,000 Accounts Receivable 15,000 Parts Inventory 13,000 Prepaid Rent 3,000 Shop Equipment 21,000 Accounts Payable $19,000 Jack Shellenkamp, Capital 41,000 $60,000 $60,000 Summarized transactions for January 2010 were as follows: Advertising costs, paid in cash, $1,000. Additional Repair Parts Inventory acquired on account $4,000. Miscellaneous expenses, paid in cash, $2,000. Cash collected from customers in payment of accounts receivable $14,000. Cash paid to creditors for accounts payable due $15,000. Repair parts used during January $4,000. (Hint: Debit this to Repair Parts Expense.) Repair services performed during January: for cash $6,000; on account $9,000. Wages for January, paid in cash, $3,000. Jack's drawings during January were $3,000. Instructions (a) Prepare journal entries to record each of the January transactions. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Account/Description Debit Credit 1. 2. 3. 4. 5. 6. 7. 8. 9. (b) Open T accounts for each of the accounts listed in the trial balance, and enter the opening balances for 2010. Post the journal entries to the accounts in the ledger. Determine the ending balance for each account. Account Balance Cash Accounts Receivable Parts Inventory Prepaid Rent Shop Equipment Accounts Payable Jack Shellenkamp, Capital Jack Shellenkamp, Drawing Repair Services Revenue Advertising Expense Miscellaneous Expense Repair Parts Expense Wage Expense (c) Complete the trial balance as of January 31, 2010. (If answer is zero, please enter 0. Do not leave any fields blank.) BYTE REPAIR SERVICE Trial Balance January 31, 2010 Cash $ $ Accounts Receivable Parts Inventory Prepaid Rent Shop Equipment Accounts Payable Jack Shellenkamp, Capital Jack Shellenkamp, Drawing Repair Services Revenue Advertising Expense Miscellaneous Expense Repair Parts Expense Wage Expense $ $ .

Explanation / Answer

2. Parts Inventory 4,000
Accounts Payable 4,000
6. Repair Parts Expense 4,000
Parts Inventory 4,000
7. Accounts Receivable 9,000
Cash 6,000
Repair Services Revenue 15,000
8. Wage Expense 3,000
Cash 3,000
9. Retained Earnings 3,000
Cash 3,000

Now just add or subtract the amounts from the starting balances that were given to create your trial balance.

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