Jack Shellenkamp owns and manages a computer repair service, which had the following trial balance on December 31, 2007 (the end of its fiscal year).
BYTE REPAIR SERVICE, INC.
Trial Balance
December 31, 2007
Cash $8,000
Accounts Receivable 15,000
Parts Inventory 13,000
Prepaid Rent 3,000
Shop Equipment 21,000
Accounts Payable $19,000
Common Stock 30,000
Retained Earnings
11,000
$60,000
$60,000
Summarized transactions for January 2008 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.
Dividends paid in January were $3,000.
Instructions
(a) Prepare journal entries to record each of the January transactions. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)