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Andy's Autobody Shop has the following balances at the beginning of September: Cash, $10,500; Accounts Receivable, $1,200; Equipment, $41,200; Accounts Payable, $2,200; Common Stock, $20,000;
Andy's Autobody Shop has the following balances at the beginning of September: Cash, $10,500; Accounts Receivable, $1,200; Equipment, $41,200; Accounts Payable, $2,200; Common Stock, $20,000; and Retained Earnings, $30,700. a. Signed a long-term note and received a $129,000 loan from a local bank. b. Billed a customer $2,100 for repair services just completed. Payment is expected in 45 days. c. Wrote a check for $710 of rent for the current month. d. Received $390 cash on account from a customer for work done last month. e. The company incurred $390 in advertising costs for the current month and is planning to pay these costs next month. Required: 1. Prepare journal entries for the above transactions, which occurred during a recent month. 2. Prepare an income statement. 3. Prepare a statement of retained earnings. 4. Prepare a classified balance sheet. Balance Sheet At September 30 Assets Current Assets Total Current Assets 0 Total Assets $ 0 Liabilities Current Liabilities Total Current Liabilities 0 0 Total Liabilities Stockholders' Equity 0 Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 0
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