Jack Shellenkamp owns and manages a computer repair service, which had the following trial balance on December 31, 2011 (the end of its fiscal year).
BYTE REPAIR SERVICE
Trial Balance
December 31, 2010
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 2011 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.
So far I got
1. Advertising expense debit 1000
cash credit 1000
2. part inventory debit 4000
account payable credit 4000
3. miscellaneous expense debit 2000
cash credit 2000
4. ???
5. ???
6. ???
7. ????
8. ????
9. ????
Thanks
Answers
Let's continue recording the transactions based on the given information:
4. Cash collected from customers in payment of accounts receivable $14,000.
Accounts Receivable debit $14,000
Cash credit $14,000
5. Cash paid to creditors for accounts payable due $15,000.
Accounts Payable debit $15,000
Cash credit $15,000
6. Repair parts used during January $4,000.
Repair Parts Expense debit $4,000
Parts Inventory credit $4,000
7. Repair services performed during January: for cash $6,000; on account $9,000.
Cash debit $6,000
Accounts Receivable debit $9,000
Repair Services Revenue credit $15,000
8. Wages for January, paid in cash, $3,000.
Wages Expense debit $3,000
Cash credit $3,000
9. Jack's drawings during January were $3,000.
Jack's Drawings debit $3,000
Cash credit $3,000
Now you have recorded all the given transactions for the month of January 2011. You can use this information to update the trial balance.
Let's continue with the remaining transactions:
4. Cash collected from customers in payment of accounts receivable $14,000.
- Accounts Receivable (credit) $14,000
- Cash (debit) $14,000
5. Cash paid to creditors for accounts payable due $15,000.
- Accounts Payable (debit) $15,000
- Cash (credit) $15,000
6. Repair parts used during January $4,000. (Hint: Debit this to Repair Parts Expense)
- Repair Parts Expense (debit) $4,000
- Parts Inventory (credit) $4,000
7. Repair services performed during January: for cash $6,000; on account $9,000.
- Cash (debit) $6,000
- Accounts Receivable (debit) $9,000
- Repair Service Revenue (credit) $15,000
8. Wages for January, paid in cash, $3,000.
- Wages Expense (debit) $3,000
- Cash (credit) $3,000
9. Jack's drawings during January were $3,000.
- Jack Shellenkamp, Capital (debit) $3,000
- Cash (credit) $3,000
The adjusted trial balance for January 31, 2011 would now show the updated balances for each account. You can calculate the new balances by adding or subtracting the debits and credits from the previous trial balance.