COMPREHENSIVE REVIEW PROBLEM Harbor Repair Service had the following post-closin

Question

COMPREHENSIVE REVIEW PROBLEM Harbor Repair Service had the following post-closing trial balance on December 31, 2017 DR CR Cash Accounts Receivable Office Supplies Prepaid Insurance Office Equipment Accum. Depr. - Office Equipment Truck Accum. Depr.-Truck Accounts Payable Notes Payable Wages Payable Interest Payable P. Harbor, Capital 8,500 3,000 4,000 12,000 2,000 20,000 8,000 9,000 4,000 24,500 47,500 Totals 47,500 During January 2018, the following transactions took place Jan1 Paid $700 cash for January rent. 2 Billed customers $1,500 for repair services performed. 3 Paid S100 cash for advertising services. 4 Purchased office supplies costing $500 on account. 5 Made a $220 cash payment on the note payable-this payment includes $20 of interest. 7 Paid $500 cash for employees' weekly wages. 9 Received $1,700 cash for repair services performed. 11 Paid S92 cash for telephone services 12 Paid $128 cash for utilities 13 Received $800 cash on account from a previously billed customer

Explanation / Answer

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Date Account Titles and Explanation Debit Credit Jan-01 Rent expense 700 Cash 700 (To record rent paid) Jan-02 Accounts receivable 1500 Service revenue 1500 (To record service revenue on account) Jan-03 Advertising expense 100 Cash 100 (To record advertising expense paid) Jan-04 Office supplies 500 Accounts payable 500 (To record purchase on account) Jan-05 Note payable 200 Interest expense 20 Cash 220 (To record payment on note payable) Jan-07 Wages expense 500 Cash 500 (To record wages paid) Jan-09 Cash 1700 Service revenue 1700 (To record service revenue received) Jan-11 Telephone expense 92 Cash 92 (To record telephone expense paid) Jan-12 Utilities expense 128 Cash 128 (To record utilities expense paid) Jan-13 Cash 800 Accounts receivable 800 (To record collection on account) Jan-14 Wages expense 500 Cash 500 (To record wages paid) Jan-17 Truck 10000 Cash 3000 Note payable 7000 (To record purchase of truck) Jan-18 Accounts payable 300 Cash 300 (To record payment on account) Jan-20 Cash 1900 Service revenue 1900 (To record service revenue received) Jan-21 Wages expense 500 Cash 500 (To record wages paid) Jan-22 P. Harbor, Drawings 400 Cash 400 (To record P. Harbor's drawings) Jan-23 Cash 1200 Unearned service revenue 1200 (To record advance received from customer) Jan-24 Repairs expense 280 Cash 280 (To record repairs expense paid) Jan-26 Miscellaneous expense 40 Cash 40 (To record miscellaneous expense paid) Jan-27 Accounts receivable 1100 Service revenue 1100 (To record service revenue on account) Jan-28 Wages expense 500 Cash 500 (To record wages paid) Jan-30 Advertising expense 100 Cash 100 (To record advertising expense paid)

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