Transaction Analysis, Trial Balance, and Closing Entries. Buckeye Appliance Repair Service, Inc., had the accompanying balance sheet values on January 1, 20X8

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Buckeye Appliance Repair Service, Inc. Balance Sheet Accounts, January 1, 20X8 Cash Accounts receivable Parts inventory Prepaid rent Trucks Equipment Accumulated depreciation, trucks Accumulated depreciation, equipment Accounts payable Paid-in capital Retained earnings Total $ 5,000 3,000 2,000 2,000 36,000 8,000 $15,000 5,000 1,900 17,000 17,100 $56,000 $56,000 During January, the following summarized transactions occurred: January 2 Collected accounts receivable, $3,000. Required 3 Rendered services to customers for cash, $4,200 ($700 collected for parts, $3,500 for labor). Use two accounts, Parts Revenue and Labor Revenue. 3 Cost of parts used for services rendered, $300. 7 Paid legal expenses, $500 cash. 9 Acquired parts on open account, $900. 11 Paid cash for wages, $1,000. 13 Paid cash for truck repairs, $500. 19 Billed customer for services, $3,600 ($800 for parts and $2,800 for labor). 19 Cost of parts used for services rendered, $500. 24 Paid cash for wages, $1,300. 27 Paid cash on accounts payable, $1,500. 31 Rent expense for January, $1,000 (reduce Prepaid Rent). 31 Depreciation for January: trucks, $600; equipment, $200. 31 Paid cash to local gas station for gasoline for trucks for January, $300. 31 Paid cash for wages, $800. 1. Enter the January 1 balances in T-accounts. Leave room for additional accounts. 2. Record the transactions in the journal. 3. Post the journal entries to the T-accounts. Key your entries by date. (Note how keying by date is not as precise as by transaction number or letter. Why? There is usually more than one transaction on any given date.) 4. Prepare a trial balance for the month ended January 31, 20X8. 5. Prepare closing entries.