Problem: Rebecca's Repair Shop was started on Sept 1 by Rebecca Lee. A summary of the September 2023 transactions is presented below.
1. Sold $10,000 in Common Stock and received $10,000 in cash to start the repair shop.
2. Purchased equipment for $5,000 cash.
3. Paid $400 cash for Sept. office rent.
4. Paid $500 cash for supplies.
5. Incurred $250 of advertising costs in the Beacon News on account.
6. Received $6,100 in cash from customers for repair service.
7. Paid a $1,000 cash dividend.
8. Paid part-time employee salaries $2,000.
9. Paid utility bills $170.
10. Performed repair services worth $750 on account.
11. Collected cash of $120 for services billed in transaction (10).
Instructions:
(a) Analyze the Sept transactions, record them in a Journal, Update the Ledgers and Prepare a Trial Balance transactions, using the following column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Common Stock, Dividends, Revenues, and Expenses.
(b) From an analysis of the owner's equity columns, compute the net income or net loss for September 2023.