On September 1, 2010, the account balances of Rand Equipment Repair were as follows.
|
Debits |
Credits |
||||
|
101 |
Cash |
$ 4,880 |
154 |
Accumulated Depreciation |
$ 1,500 |
|
112 |
Accounts Receivable |
3,520 |
201 |
Accounts Payable |
3,400 |
|
126 |
Supplies |
2,000 |
209 |
Unearned Service Revenue |
1,400 |
|
153 |
Store Equipment |
15,000 |
212 |
Salaries Payable |
500 |
|
301 |
J. Rand, Capital |
18,600 |
|||
|
$25,400 |
$25,400 |
During September the following summary transactions were completed.
Sept. 8 Paid $1,400 for salaries due employees, of which $900 is for September.
10 Received $1,200 cash from customers on account.
12 Received $3,400 cash for services performed in September.
15 Purchased store equipment on account $3,000.
17 Purchased supplies on account $1,200.
20 Paid creditors $4,500 on account.
22 Paid September rent $500.
25 Paid salaries $1,250.
27 Performed services on account and billed customers for services provided $1,500.
29 Received $650 from customers for future service.
Adjustment data consist of:
1. Supplies on hand $1,200.
2. Accrued salaries payable $400.
3. Depreciation is $100 per month.
4. Unearned service revenue of $1,450 is earned.
Instructions
(a) Enter the September 1 balances in the ledger accounts.
(b) Journalize the September 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 September 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 September and a balance sheet at September 30 on the next page.