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).


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




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.