Andy's Autobody Shop has the following balances at the beginning of September: Cash, $9,800; Accounts Receivable, $1,400;
Equipment, $39,600; Accounts Payable, $2,100; Common Stock, $20,000; and Retained Earnings, $28,700.
a. Signed a long-term note and received a $136,500 loan from a local bank.
b. Billed a customer $2,200 for repair services just completed. Payment is expected in 45 days.
C. Wrote a check for $620 of rent for the current month.
d. Received $410 cash on account from a customer for work done last month.
e. The company incurred $400 in advertising costs for the current month and is planning to pay these costs next month.
1. Prepare journal entries for the above transactions, which occurred during a recent month.
2. Prepare an income statement.
3. Prepare a statement of retained earnings.
4. Prepare a classified balance sheet.