Reference no: EM13762023

Problem: On September 1, 2012 the account balances of Moore Equipment Repair were as follows:

No.	Debit
101	Cash	$4,880
112	Accounts receivable	3,520
126	Supplies	2,000
153	Equipment	15,000
		$25,400

No.	Credits
154	Accumulated depreciation-Equipment	$1,500
201	Accounts Payable	3,400
209	Unearned Service Revenue	1,400
212	Salaries and Wages Payable	500
301	Owner's Capital	18,600
		$25,400

During September, the following summary transaction was completed.

Sept. 8: Paid $1,400 for salaries due employees, of which $900 is for September.

10: Received $1,200 cash from customers on accounts.

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 $2,100.

29: Received $650 from customer for future services.

Adjustment data consist of:

1. Supplies on hand $1,300.

2. Accrued salaries payable $300.

3. Depreciation is $100 per month.

4. Unearned service revenue of $1,450 in earned.

Instructions:

(a) Enter the September 1 balances in the ledger accounts.

(b) Journalize the September transaction.

(c) Post to the ledger accounts. Use J1 for the posting reference. Use the following additional counts: No. 407 Services Revenue, No. 615 Depreciation Expenses, No. 631 Supplies Exp No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.