Victor Yang asks your advice in setting up the accounting records for his new business, Victor's Bike Shop. The business will begin as a bicycle repair shop and will operate in a rented building. Victor's Bike Shop will need office equipment and repair equipment. The business will borrow money using a note payable to buy the needed equipment. Victor's Bike Shop will purchase on account repair supplies and office supplies.

The business will need a store manager. This person will be paid a weekly salary of \(\$ 1,800\). Other expenses will include advertising and insurance. Victor's Bike Shop will want to know which aspects of the business generate the most and the least revenue so that when he starts to sell bikes next year he will know which ones to stock. The business will use separate service revenue accounts for mountain bike, road bike, and tandem bike repairs. Victor's better customers will be allowed to open accounts with the business.

Required 

List all the accounts Victor's Repair Shop will need, starting with the assets and ending with the expenses. Indicate which accounts will be reported on the balance sheet and which accounts will appear on the income statement.