On August 1, 2022, the following were the account balances of Blue Repair Services. Debit Credit Cash $4,590 Accumulated Depreciation-Equipment 460 Accounts Receivable 2,210 Accounts Payable 1,750 Notes Receivable 3,000 Unearned Service Revenue 960 Supplies 780 Salaries and Wages Payable 1,080 Equipment 7,600 Common stock 9,100 Retained Earnings 4,830 18,180 18,180 During August, the following summary transactions were completed. Paid $300 cash for advertising in local newspapers. Advertising flyers will be included with newspapers delivered during August and September. Aug. 1 Paid August rent $290. 5 Received $910 cash from customers in payment of account.. 10 10 12 Paid $2,370 for salaries due employees, of which $1,290 is for August and $1,080 is for July salaries payable. Received $2,130 cash for services performed in August. 12 222222 15 Purchased store equipment on account $1,520. 20 Paid creditors $1,520 of accounts payable due. Purchased supplies on account $610. Paid $2,200 cash for employees' salaries. 25 27 Billed customers $2,860 for services performed. 29 Received $590 from customers for services to be performed in the future. Adjustment data: 1. A count shows supplies on hand of $730. 2. Accrued but unpaid employees' salaries are $1,170. 3. Depreciation on equipment for the month is $240. 4. Services were performed to satisfy $610 of unearned service revenue. 5. One month's worth of advertising services has been received. 6. One month of interest revenue related to the $3,000 note receivable has accrued. The 4-month note has a 6% annual interest rate. Cash Accounts Receivable Notes Receivable Interest Receivable Supplies Prepaid Advertising Equipment BLUE REPAIR SERVICES Trial Balances August 31, 2022 Debit 1540 4160 3000 15 15 730 150 9120 Credit Equipment Accumulated Depreciation-Equipment Accounts Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Service Revenue Interest Revenue Depreciation Expense 9120 240 700 2360 940 1170 9100 4830 5600 15 Interest Revenue Depreciation Expense 240 Supplies Expense 660 Salaries and Wages Expense 4660 Rent Expense 290 Advertising Expense 150 15 24715 24715 Revenues Interest Revenue Service Revenue Total Revenues Expenses Depreciation Expense Supplies Expense BLUE REPAIR SERVICES Income Statement For the Month Ended August 31, 2022 15 5600 240 660 Salaries and Wages Expense 4660 5615 Salaries and Wages Expense Rent Expense Advertising Expense Total Expenses Net Income/(Loss). 4660 290 i 150 6000 i -385 BLUE REPAIR SERVICES Retained Earnings Statement For the Month Ended August 31, 2022 Retained earnings, August 1 Less : Net Income/(Loss) Retained earnings, August 31 $ -385 4830 4445 Prepare a classified balance sheet at August 31. (List Current Assets in order of liquidity.) BLUE REPAIR SERVICES Balance Sheet August 31, 2022 Assets Current Assets Cash Accounts Receivable Notes Receivable Interest Receivable Supplies Prepaid Advertising + 1540 4160 3000 15 730 150 Prepaid Advertising Total Current Assets Property, Plant, and Equipment Equipment 150 9120 Less Accumulated Depreciation-Equipment Total Property, Plant, and Equipment 700 Total Assets Liabilities and Stockholders' Equity Current Liabilities Accounts Payable tA $ 2360 Advertising rrent Assets Plant, and Equipment ent Accumulated Depreciation-Equipment roperty, Plant, and Equipment v sets and Stockholders' Equity Liabilities its Payable to 150 9120 700 2360 9595 8420 18015 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Unearned Service Revenue Salaries and Wages Payable Total Current Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity 2360 940 1170 9100 4445 Salaries and Wages Payable Total Current Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 1170 9100 4445 1170 9100 4445 $ EA 4470 13545 18015 Journalize and post closing entries and complete the closing process. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. For accounts that have zero ending balance, the entry should be the balance date and zero for the amount.) Date Account Titles and Explanation Aug. 31 Aug. 31 (To close revenue accounts) Debit Credit Aug. 31 (To close revenue accounts) Aug. 31 (To close expense accounts) (To close net income to retained earnings) (To close net income to retained earnings) Cash 8/1 Bal. 4,590 8/1 300 8/5 910 8/3 290 8/12 2,130 8/10 2,370 8/29 590 8/20 1,520 8/25 2,200 8/31 Bal. 1,540 Accounts Receivable 8/1 Bal. 8/27 2,210 8/5 910 2,860 Accounts Receivable 8/1 Bal. 2,210 8/5 910 8/27 2,860 8/31 Bal. 4,160 Notes Receivable 8/1 Bal. 3,000 8/31 Bal. 3,000 Interest Receivable 8/31 8/31 Bal. Supplies 15 15 8/1 Bal. 780 8/31 660 Supplies 8/1 Bal. 780 8/31 660 8/22 610 8/31 Bal. 730 Prepaid Advertising 8/1 8/31 Bal. 300 8/31 150 150 Equipment 8/1 Bal. 7,600 8/15 1,520 8/31 Bal. 9,120 Accumulated Depreciation-Equipment Accumulated Depreciation-Equipment 8/1 Bal. 460 8/31 240 8/31 Bal. 700 Accounts Payable 8/20 1,520 8/1 Bal. 1,750 8/15 1,520 8/22 610 8/31 Bal. 2,360 Unearned Service Revenue 8/31 610 8/1 Bal. 960 8/29 590 8/31 Bal. 940 Salaries and Wages Payable 8/10 1,080 8/1 Bal. 1,080 8/31 1,170 8/31 Bal. 1,170 Common Stock 8/1 Bal. 9,100 8/31 Bal. 9.100 Retained Earnings Income Summary 8/1 Bal. 4,830 Income Summary Service Revenue 8/12 2,130 Interest Revenue 8/27 2,860 8/31 610 Interest Revenue Depreciation Expense 8/31 Supplies Expense 8/31 240 660 8/31 15 Salaries and Wages Expense 8/10 8/25 1,290 2,200 8/31 1,170 v Rent Expense 8/31 290 8/31 Advertising Expense 150 8/31 eTextbook and Media List of Accounts Save for Later Advertising Expense 150 Attempts: 0 of 3