please answer the transaction worksheet using the case. 1 (overnight auto services)

CASE NO.1 OVERNIGHT AUTO SERVICES Michael McBryan, an experienced auto mechanic, opens his own automotive repair business, Overnight Auto Service. A distinctive feature of Overnight's operations is that all repair work is done at night. This strategy offers customers the convenience of dropping off their cars in the evening and picking them up the following morning. Operating at night also enables Overnight to minimize its labor cost. Instead of hiring full-time employees, Overnight offers part-time work to mechanics that already have day jobs at major automobile dealership. This eliminates the need for costly employees' pension plans, benefits usually associated with full-time employment. McBryan knows that small businesses such as his are not required to prepare formal financial statements, however, he believes they will be useful to him in running the business. He also believes that the financial history provide by a series of monthly financial statements will be helpful in obtaining investment capital from investors and creditors. McBryan officially started Overnight on January 20, 2007. On that day he received a charter from the state to begin a small, closely held corporation whose owner consisted of himself and several family members. Capital stock issued to these investors included 8,000 shares at $10 per share. McBryan opened a bank account in the name of Overnight Auto Service, into which he deposited $80,000 received from the issuance of the capital stock. McBryan negotiated with both the City of Sta. Teresa and the Metropolitant Transit Authority (MTA) to purchase and abandoned bus garage. (The MTA owned the garage, but the city owned the land). On January 21, Overnight purchased the land from the city for $52,000 cash. On January 22, Overnight purchased the old garage building from MTA for $36,000, paying $6,000 cash as down and issued a 90-day non-interest-bearing note payable for the balance. On January 23, Overnight purchased tools and automotive repair equipment from Snappy Tools. The purchase price was $13,800 payable within 60 days. After taking delivery of the new tools and equipment, Overnight found that it had purchased more than it needed. Ace Towing, a neighboring business, offered to buy the excess items. On January 24, Overnight sold some of its new tools to Ace for $1,800, a price equal to Overnight's cost. Ace made no down payment but agree to pay the amount due within 45 days. On January 26, Overnight received $600 cash from Ace Towing as partial settlement of its account on January 24. Having enough cash, Overnight decided to make $6,800 partial payment of account to Snappy Tools. By the last week of January, McBryan had acquired the assets Overnight need to start operating, and he began to provide repair services for customers. Rather than recording cash individual sale of repair service, he decided to accumulate them and record them at the end of the month. Sales of repair service for the last week of January were $2,200, all of which was received in cash. In order to earn the $2,200 revenue, Overnight has to pay some operating expenses, namely utilities and wages. For January, Overnight owed $200 for utilities and $1,200 wages of his employees, a total of $1,400 which was paid in cash on January 31. What to do? Using the information that transpired for Overnight Auto Service for the month of January, 2007, identify the Balance Sheet and Income Statement accounts. OVERNIGHT AUTO SERVICES TRANSACTION WORKSHEET For the month of Lanuary 2007 ASSETS = LIABILITIES Land Building Tools Equipment Accounts Payable Notes Payable EQUITY Capital Revenue and Accounts Affected Expense