Financial Accounting: P2-9A Leo Mataruka owns and manages (Cyberdyne)

Financial Accounting
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):
Trial 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 T
otals 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.)

(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.
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