P2-9A_and P2_10A

P2-9A

 Leo Mataruka owns and manages a computer repair service. It had the following trial balance on December 31, 2010 (its fiscal year end):

                                                CYBERDYNE REPAIR SERVICE

                                                                Trail Balance

                                                December 31, 2010

                                                                                                Debit                     Credit

                Cash                                                                      $2,000

                Accounts receivable                                       16,500

                Repair parts inventory                                   16,000

                Shop equipment                                              28,000

                Accounts payable                                                                            $23,000

                Unearned revenue                                                                            2,000

                L. Mataruka , Capital                                       _______             37,500

                Totals                                                                    $62,500 $62,500

                                                                                                =======             =======

A summary of transactions for January 2011 follows:

Jan. 2 Leo went to his bank and a personal loan of $6,000 by signing a note payable.

Jan. 3 Leo transferred $5,000 from his personal bank account into Cyberdyne’s bank account.

Jan. 4 Purchased additional repair parts inventory on account $5,200.

Jan. 6 Miscellaneous expenses were paid in cash $1,300.

     10 Collected $7,200 cash from customers on account.

      15 Cash was paid to creditors on account $6,500.

      19 Advertising costs were paid in cash $600.

      20 Purchased additional equipment for $4,800 cash.

       29 Repairs services done in January were for $5,000 cash and $15,000 on account.

       30 Wages for January were paid in cash $2,900.

       30 Paid January and February’s rent for a total of $1,800

       31 Leo withdrew $500 cash. He used the cash to make payment on his personal loan.

        31 A total of $4,500 of the repair parts inventory was used in the month.  (Hint: Debit this to  Repair parts expense.)

         Instructions:

(A)   Prepare journal entries to record of each of Cyberdyne’s January transactions.

(B)   Open ledger accounts for each of the accounts listed in the trial balance, and enter the December 31, 2010, balances. Use T- Accounts.

(C)   Post the journal entries to the accounts in the ledger.

(D)   Prepare a trial balance as at January 31, 2011.

P2_10A

                Refer to the trial balance prepared in part (d) of P2_9A for CYBERDYNE REPAIR SERVICE.

                Instructions:

(a)    Prepare an income statement for CYBERDYNE REPAIR SERVICE.

(b)   Prepare a statement of owner’s equity.

(c)    Prepare a balance sheet.