Reference no: EM131787400
Problem - On September 1, 2008, the account balances of Rand Equipment Repair, Inc. were as follows.
|
No.
|
Debits
|
|
No.
|
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
|
|
|
|
|
311
|
Common Stock
|
15,000
|
|
|
|
|
320
|
Retained Earnings
|
3,600
|
|
|
$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) Journalize the September transactions. (Your instructor may advise you to post to ledger accounts, that should be turned in as part of the problem.)
(b) Prepare a trial balance at September 30.
(c) Journalize and post adjusting entries.
(d) Prepare an adjusted trial balance.
(e) Prepare an income statement and a retained earnings statement for September and a balance sheet at September 30.