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.