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Unformatted text preview: P2-3ACorrect. Jack Shellenkamp owns and manages a computer repair service, which had the following trial balance on December 31, 2007 (the end of its fiscal year). BYTE REPAIR SERVICETrial BalanceDecember 31, 2007Cash$8,000Accounts Receivable15,000Parts Inventory13,000Prepaid Rent3,000Shop Equipment21,000Accounts Payable$19,000Jack Shellenkamp, Capital41,000$60,000$60,000Summarized transactions for January 2008 were as follows: 1.Advertising costs, paid in cash, $1,000.2.Additional Repair Parts Expense, Parts Inventory acquired on account $4,000.3.Miscellaneous expenses, paid in cash, $2,000.4.Cash collected from customers in payment of accounts receivable $14,000.5.Cash paid to creditors for accounts payable due $15,000.6.Repair parts used during January $4,000. (Hint: Debit this to Repair Parts Expense.)7.Repair services performed during January: for cash $6,000; on account $9,000.8.Wages for January, paid in cash, $3,000....
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