208.Based on the following trial balance for Barry's Automotive Shop, Inc., prepare an income statement, statement of retained earnings, and a balance sheet. Barry made no additional investments in the company during the year.
Barry’s Automotive Shop, Inc.
Trial Balance
December 31
Cash$13,500
Accounts receivable1,500
Supplies500
Repair shop equipment27,000
Service truck33,000
Accounts payable $2,600
Common stock 1,000
Retained earnings 38,525
Dividends36,000
Service revenue 125,000
Supplies expense3,425
Rent expense18,000
Utilities expense5,000
Gas expense7,200
Wages expense 22,000
Totals$167,125 $167,125
209.For each of the accounts in the following table (1) identify the type of account as an asset, liability, equity, revenue, or expense, and (2) identify the normal balance of the account.
Account TypeNormal Balance
a. Wages Expense
b. Accounts Receivable
c. Commissions Earned
d. Salaries Payable
e. Common Stock
f. Unearned Advertising Revenue
g. Salaries Expense
h. Magazine Subscription Revenue
i. Dividends
j. Prepaid Insurance
210.For each of the following accounts, identify whether a debit or credit yields the indicated change.
a. To increase Fees Earned
b. To decrease Cash
c. To decrease Unearned Revenue
d. To increase Accounts Receivable
e. To increase Common Stock
f. To decrease Notes Payable
g. To increase Prepaid Rent
h. To increase Salaries Expense
i. To increase Accounts Payable
j. To decrease Prepaid Insurance
211.Indicate on which of the financial statements the following items appears. Use I for income statement, E for statement of retained earnings, and B for balance sheet. More than one statement may be appropriate for some items.
a. Fees Earned
b. Cash
c. Unearned Revenue
d. Rent expense
e. Retained Earnings
f. Notes Payable
g. Prepaid Rent
h. Salaries Expense
i. Notes Payable
j. Dividends