Reference no: EM132472817

On November 1, 2017, the following were the account balances of Soho Equipment Repair.

                                                                           Debit                                  Credit

Cash                                                   $ 2,790

Accumulated Depreciation-Equipment                                               $ 500

Accounts Receivable                                 2,910

Accounts Payable                                                                        2,300

Supplies                                                 1,120

Unearned Service Revenue                                                               400

Equipment                                              10,000

Salaries and Wages Payable                                                              620

Common Stock                                                                            10,000

Retained Earnings                                                                           3,000

                                                             $16,820                       $16,820

During November, the following summary transactions were completed.

Point 1: Nov.8Paid $1,220 for salaries due employees, of which $600 is for November and $620 is for October salaries payable.

Point 2: 10Received $1,800 cash from customers in payment of account.12Received $3,700 cash for services performed in November.

Point 3: 15Purchased store equipment on account $3,600.17Purchased supplies on account $1,300.

Point 4: 20Paid creditors $2,500 of accounts payable due.

Point 5: 22Paid November rent $480.25Paid salaries $1,000.

Point 6: 27Performed services on account worth $900 and billed customers.

Point 7: 29Received $750 from customers for services to be performed in the future.

Adjustment data:

1. Supplies on hand are valued at $1,100.
2. Accrued salaries payable are $480.
3. Depreciation for the month is $250.
4. Services were performed to satisfy $500 of unearned service revenue.

Instructions

Question (a) Enter the November 1 balances in the ledger accounts. (Use T-accounts.)

Question (b) draft a journal entry the November transactions.

Question (c) Post to the ledger accounts. Use Service Revenue, Depreciation Expense, Supplies Expense, Salaries and Wages Expense, and Rent Expense.

Question (d) do a trial balance at November 30.

Question (e) draft a Journal entry and post adjusting entries.

Question (f) draft a adjusted trial balance.

Question (g) draft an income statement and a retained earnings statement for November and a classified balance sheet at November 30.