Ed runs an auto repair business out of the garage attached to his personal residence. How should he.

Ed runs an auto repair business out of the garage attached
to his personal residence. How should he account for each of the following
items?

a. Cash received from repair services, $28,000.

b. Interest paid on his home mortgage, $7,300.

c. Power jack hoist purchased at a cost of $12,000.

d. Electricity bills, $3,600. (Ed does not have separate
electricity service to the garage.)

e. Checks received from customers that were returned by his
bank, $1,600. The bank charged Ed’s account $35 for processing the bad checks.

f. Telephone bill for phone in the garage, $420. (Ed has a
separately
»

Ed runs an auto repair business out of the garage attached
to his personal residence. How should he account for each of the following
items?

a. Cash received from repair services, $28,000.

b. Interest paid on his home mortgage, $7,300.

c. Power jack hoist purchased at a cost of $12,000.

d. Electricity bills, $3,600. (Ed does not have separate
electricity service to the garage.)

e. Checks received from customers that were returned by his
bank, $1,600. The bank charged Ed’s account $35 for processing the bad checks.

f. Telephone bill for phone in the garage, $420. (Ed has a
separately listed phone in his house.)

g. Advertising in the local newspaper, $800.

h. Interest paid on home furniture loan, $600.

»