On January 1, 2019, Brad Thomas Invested $30,000 in Thomas

question 2

Essay

On January 1, 2019, Brad Thomas invested $30,000 in Thomas Repairs. During 2019, Brad withdrew $17,000 for personal use. Thomas Repairs reports the following balances on December 31, 2019: $\begin{array}{l}\begin{array} { l r } \text { Accounts receivable } & \$ 9,000 \\\text { Accounts payable } & 4,200 \\\text { Service revenue } & 25,550 \\\text { Land } & 4,000 \\\text { Rent expense } & 4,500 \\\text { Note payable } & 3,800 \\\text { Supplies } & 900 \\\text { Brad Thomas, Capital, Jan. } 1,2019 & 0 \\\text { Salary expense } & 9,650 \\\text { Cash } & 18,500 \\\text { Brad Thomas, Withdrawals } & 17,000\end{array}\\\\\text { Prep are a balance sheet dated December 31, 2019, for Thomas Repairs. }\end{array}$

Identify and classify accounts as assets, liabilities, or stockholders' equity.

Understand transactions that affect stockholders' equity and their impact.

Prepare and interpret an income statement.

Understand the accounting equation and how specific transactions affect it.

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Definitions:

Orthopedic Surgery

A branch of surgery concerned with conditions involving the musculoskeletal system, requiring operative and non-operative treatment.

Income Percentage

The portion or share of one's income allocated or spent on specific expenses, savings, or investments, usually expressed as a percentage.

Doctorate Degree

The highest level of academic degree awarded by universities, typically after a course of study that follows a master's degree.

Associate's Degree

A post-secondary degree awarded by community colleges, junior colleges, technical colleges, and some four-year institutions, typically requiring two years of study.