On September 1, 2012, the following were the account balances of Worthington Equipment Repair.
|
Debits |
Credits |
||
|
Cash |
$4,880 |
Accumulated Depreciation—Equipment |
$1,600 |
|
Accounts Receivable |
3,420 |
Accounts Payable |
3,100 |
|
Supplies |
800 |
Unearned Service Revenue |
400 |
|
Equipment |
15,000 |
Salaries and Wages Payable |
700 |
|
Common Stock |
10,000 |
||
|
Retained Earnings |
8,300 |
||
|
$24,100 |
$24,100 |
During September, the following summary transactions were completed. Sept. 8 Paid $1,100 for salaries due employees, of which $400 is for September and $700 is for August salaries payable.
10 Received $1,500 cash from customers in payment of account.
12 Received $3,400 cash for services performed in September.
15 Purchased store equipment on account $3,000.
Sept. 17 Purchased supplies on account $2,000.
20 Paid creditors $4,500 of accounts payable due.
22 Paid September rent $520.
25 Paid salaries $1,200.
27 Performed services on account and billed customers for services provided $2,040.
29 Received $650 from customers for services to be provided in the future. Adjustment data:
1. Supplies on hand $1,100.
2. Accrued salaries payable $400.
3. Depreciation $200 per month.
4. Unearned service revenue of $280 earned.
Instructions
(a) Enter the September 1 balances in the ledger T accounts.
(b) Journalize the September transactions.
(c) Post to the ledger T accounts. Use Service Revenue, Depreciation Expense, Supplies Expense, Salaries and Wages Expense, and Rent Expense.
(d) Prepare a trial balance at September 30.
(e) Journalize and post adjusting entries.
(f ) Prepare an adjusted trial balance.
(g) Prepare an income statement and a retained earnings statement for September and a classified balance sheet at September 30.