Problem #1:- Prepare the necessary T-account for the following transactions of Good times wheel repair Shop that occurred during January2017 Jan 3 Lucy Genova opened a bank account under the name of her new business good times wheel repair shop she deposited $50000 in cash to start the new business. 4 Rented a temporary shop and paid $600 of the January rent: issued check no 1. 5 Rented automotive tools and equipment until the firm could purchase its own stuff in the amount of 100$ that was paid on January: issued check no 2. 5 Purchased motorcycle parts and supplies described on invoice no 306 from southern supplies company for $700 on account. 10 Purchased land as prospective building site for $20.000 paid 8.000$in cash (check no3) and issued a one- year note for the balance. 12 Made repairs on George shipmens motorcycle for 900$shipman asked that a charge account be opened in this name: he promised to settle the account within 30 days the arrangement was authorized by the service manager. 26 Made repair to Jay Munsons motorcycle for450$ and was paid 180$ a charge account was opened under his name. 29 Purchased motorcycle parts and supplies from the Delco supply house for 950$ on account (invoice no 1004). 29 Paid the southern supplies company 400$ from what they owed (check no.4). 31 Paid electricity and water bills of 200$ for January in cash. 31 Made motorcycle repair to various cash customers for 6.800$. 31 Paid 2.700$ as salaries for the month (check no 5 issued to obtain payroll cash). 31 Lucy Genova withdrew 600$ in cash in anticipation that at least that much income will be earned (check no 6). 31 Purchased automotive tools and equipment for cash 4.000$ (check no7). 31 Paid premium of $600(check no.8) on a12-month comprehensive insurance policy: the policy becomes effective on February 1, 2003. 31 Received a check for $100 from George shipman as part payment of his account. 31 Received the telephone bill for $500, and promised to pay later.

Problem #2: Prepare a Balance sheet, income statement, and owner's equity statement for the good times wheel repair shop