S Burleson Auto Glass, Inc. Balance Sheet Accounts, January 1, 20X0 Cash Accounts receivable Parts inventory Prepaid rent Trucks Equipment Accumulated depreciation, trucks Accumulated depreciation, equipment Accounts payable Paid-in capital Retained earnings 7,800 3,300 1,700 2,500 36,300 7,600 $ 14,400 4,800 2,200 20,200 17,600 $ Totals 59,200 $ 59,200 January 2 Collected accounts receivable, $3,000. 3 Rendered services to customers for cash, $4,550 ($850 collected for parts, $3,700 for labor). Use two accounts, Parts Revenue and Labor Revenue. 3 Cost of parts used for services rendered, $350. 7 Paid legal expenses, $700 cash. 9 Acquired parts on open account, $800. 11 Paid cash for wages, $900. 13 Paid cash for truck repairs, $450. 19 Billed customer for services, $3,950 ($950 for parts and $3,000 for labor). 19 Cost of parts used for services rendered, $500. 24 Paid cash for wages, $1,300. 27 Paid cash on accounts payable, $1,900. 31 Rent expense for January, $1,250 (reduce Prepaid Rent). 31 Depreciation for January: trucks, $800; equipment, $200. 31 Paid cash to local gas station for gasoline for trucks for January, $200. 31 Paid cash for wages, $600. Requirement 2. Enter the January 1 balances in T-accounts, post the journal entries to the T-accounts, then calculate the ending balance for each T-account. (Abbreviation used: Depr. = Depreciation. If there are two transactions with the same date, enter the amounts in the same order as presented in the transaction list.) Cash Accumulated Depr., Equipment Depreciation Expense, Equipment Jan 1 Jan 31 Jan 1 Bal Bal Bal Bal Bal Bal Accounts Receivable Accounts Payable Depreciation Expense, Trucks Jan 3 Jan 9 Jan 13 Bal Bal Bal Bal Bal Bal Parts Inventory Paid-in Capital Gasoline Expense Jan 27 Jan 19 Jan 24 Bal Bal Bal Bal Bal Bal Prepaid Rent Retained Earnings Legal Expense Jan 24 Jan 9 Jan 9 Bal Bal Bal Bal Bal Bal Trucks Labor Revenue Rent Expense Jan 3 Jan 1 Jan 13 Bal Bal Bal Bal Bal Bal Equipment Parts Revenue Repairs Expense Jan 9 Jan 7 Jan 7 Bal Bal Bal Bal Bal Bal Accumulated Depr., Trucks Cost of Parts Sold Wages Expense Jan 9 Jan 19 Jan 24 Bal Bal Bal Bal Bal Bal Requirement 4. Prepare closing entries. Prepare the journal entry to close the revenue account(s). Accounts Debit Credit C1 Legal expense Prepare the journal entry to close the expense account(s). Accounts Debit Credit C2 Accumulated depreciation, trucks Prepare the journal entry to close income summary. Accounts Debit Credit C3 Rent expense