Reference no: EM132670951
During October, Dan's Pretty Good Auto Repair completed these transactions:
October 1 - Purchased additional equipment from Don's Tool Shed, $750.
October 2 - Paid Nuts and Boldts Magazine for September advertising, $800.
October 3 - Repaired Dorothy Little's Mercury Sable, $7200.
October 6 - Paid gas bill to Victor's Gas Co., $30.
October 8 - Finished extensive upgrades to Mac Alexander's Cadillac Escalade, $20,000.
October 12 - Paid Perfectly Adequate Training LLC to send employees to mechanical training workshop, $550.
October 15 - Paid Joey Johnston, auto shop employee, $1000.
October 17 - Replaced the high-altitude battery and did a horn fluid flush in Montavious Montoya's 1981 DeLorean, $2,400. Payment to be received on Nov 10.
October 18 - Put a refurbished 3.99L V7 engine in Josh Farmer's 2007 Dodge Nitro, $3900.
October 22 - Sent a check to Scharich Charities for $105 to sponsor a local food bank. (This amount is not to be considered an advertising expense; it is a business expense and is posted to Misc. Expense)
October 24 - Purchased parts for company vehicles from Mcfly's Toyota Fort Worth, $610.
October 28 - Dan Potter withdrew $2,100 from the business to pay personal expenses.
October 30 - Paid Joey Johnston, auto shop employee, $1000.
October 30 - Paid Horizontical Mobile phone bill, $550.
October 30 - Received advertising bill for October, $800, from Nuts and Boldts Magazine. The bill is to be paid on Nov 2.
Required Work for October:
Problem 1) Journalize transactions in a genera journal and post to ledger accounts.
Problem 2) build a trial balance in the first two columns of a blank, fold-out worksheet located at the end of your textbook and complete the worksheet using the following adjustment data:
a) One month's rent had expired. Paid 5 months' rent in advance on September 1, $10,000.
b) An inventory shows $430 of equipment remaining.
c) Depreciation on equipment, $190.
d) Depreciation on vehicles, $300.
Problem 3) build an October income statement, statement of owner's equity, and balance sheet.
Problem 4) From the worksheet, journalize and post adjusting and closing entries (p. 6 of journal).
Problem 5) build a post-closing trial balance.