On November 1, 2012, the following were the account balances of Tate Equipment Repair.
|
Debits |
Credits |
||
|
Cash |
$ 2,790 |
Accumulated Depreciation—Equipment |
$ 500 |
|
Accounts Receivable |
2,910 |
Accounts Payable |
2,300 |
|
Supplies |
1,120 |
Unearned Service Revenue |
400 |
|
Equipment |
10,000 |
Salaries and Wages Payable |
620 |
|
Common Stock |
10,000 |
||
|
Retained Earnings |
3,000 |
||
|
$16,820 |
$16,820 |
During November, the following summary transactions were completed. Nov. 8 Paid $1,220 for salaries due employees, of which $600 is for November and $620 is for October salaries payable.
10 Received $1,800 cash from customers in payment of account.
12 Received $1,700 cash for services performed in November.
15 Purchased store equipment on account $3,600.
17 Purchased supplies on account $1,300.
20 Paid creditors $2,500 of accounts payable due.
22 Paid November rent $480.
25 Paid salaries $1,000.
27 Performed services on account and billed customers for services provided $900.
29 Received $750 from customers for services to be provided in the future. Adjustment data:
1. Supplies on hand are valued at $1,100.
2. Accrued salaries payable are $480.
3. Depreciation for the month is $250.
4. Unearned service revenue of $500 is earned.
Instructions
(a) Enter the November 1 balances in the ledger accounts. (Use T accounts.)
(b) Journalize the November transactions.
(c) Post to the ledger accounts. Use Service Revenue, Depreciation Expense, Supplies Expense, Salaries and Wages Expense, and Rent Expense.
(d) Prepare a trial balance at November 30.
(e) Journalize and post adjusting entries.
(f ) Prepare an adjusted trial balance.
(g) Prepare an income statement and a retained earnings statement for November and a classified balance sheet at November 30.