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:
- Supplies on hand are valued at $1,100.
- Accrued salaries payable are $480.
- Depreciation for the month is $250.
- 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.
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