On November 1, 2014, the account balances of Schilling Equipment Repair were as follows.
|
Cash |
Debit |
Credit |
||
|
101 |
$ 2,400 |
154 Accumulated Depreciation—Equipment $ 2,000 |
||
|
112 |
Accounts Receivable |
4,250 |
201 Accounts Payable |
2,600 |
|
126 |
Supplies |
1,800 |
209 Unearned Service Revenue |
1,200 |
|
153 |
Equipment |
12,000 |
212 Salaries and Wages Payable |
700 |
|
301 Owner’s Capital |
13,950 |
|||
|
$20,450 |
$20,450 |
|||
During November, the following summary transactions were completed.
|
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 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 $1,900. |
|
|
29 |
Received $600 from customers for future service. |
Adjustment data consist of:
1. Supplies on hand $1,400.
2. Accrued salaries payable $350.
3. Depreciation for the month is $200.
4. Services related to unearned service revenue of $1,250 were performed.
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 and Wages 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.