On November 1, 2010, the account balances of Morelli Equipment Repair were as follows.
|
Debits |
Credit |
||||
|
101 |
Cash |
$ 2,400 |
154 |
Accumulated Depreciation |
$ 2,000 |
|
112 |
Accounts Receivable |
4,250 |
201 |
Accounts Payable |
2,600 |
|
126 |
Supplies |
1,800 |
209 |
Unearned Service Revenue |
1,200 |
|
153 |
Store Equipment |
12,000 |
212 |
Salaries Payable |
700 |
|
301 |
V. Morelli, Capital |
13,950 |
|||
|
$20,450 |
$20,450 |
During November the following summary transactions were completed.
Nov. 8 Paid $1,700 for salaries due employees, of which $700 is for October salaries.
10 Received $3,420 cash from customers on account.
12 Received $3,100 cash for services performed in November.
15 Purchased store equipment on account $2,000.
17 Purchased supplies on account $700.
20 Paid creditors on account $2,700.
22 Paid November rent $400.
25 Paid salaries $1,700.
27 Performed services on account and billed customers for services provided $900.
29 Received $600 from customers for future service.
Adjustment data consist of:
1. Supplies on hand $1,200.
2. Accrued salaries payable $400.
3. Depreciation for the month is $200.
4. Unearned service revenue of $1,250 is earned.
Instructions
(a) Enter the November 1 balances in the ledger accounts.
(b) Journalize the November transactions.
(c) Post to the ledger accounts. Use J1 for the posting reference. Use the following additional accounts:
No. 407 Service Revenue, No. 615 Depreciation Expense, No. 631 Supplies Expense, No. 726 Salaries Expense, and No. 729 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 an owner’s equity statement for November and a balance sheet at November 30.