Reference no: EM132473555
Question - Alou Equipment Repair has a September 30 year end. The company adjusts and closes its accounts on an annual basis. On August 31, 2021, the account balances of Alou Equipment Repair were as follows:
ALOU EQUIPMENT REPAIR Trial Balance August 31, 2021
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|
Debit
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Credit
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Cash
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$2,790
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|
Accounts receivable
|
7,910
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|
Supplies
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8,500
|
|
Equipment
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9,000
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|
Accumulated depreciation-equipment
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$1,800
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Accounts payable
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|
3,100
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Unearned revenue
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|
400
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J. Alou, capital
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|
21,200
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J. Alou, drawings
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15,600
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Service revenue
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|
49,600
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Rent expense
|
5,500
|
|
Salaries expense
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24,570
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|
Telephone expense
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2,230
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|
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$76,100
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$76,100
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During September, the following transactions were completed:
Sept. 1 Borrowed $10,000 from the bank and signed a two-year, 5% note payable.
Sept. 2 Paid September rent, $500.
Sept. 8 Paid employee salaries, $1,050.
Sept. 12 Received $1,500 cash from customers on account.
Sept. 15 Received $5,700 cash for services performed in September.
Sept. 17 Purchased additional supplies on account, $1,300.
Sept. 20 Paid creditors $2,300 on account.
Sept. 21 Paid September telephone bill, $200.
Sept. 22 Paid employee salaries, $1,050.
Sept. 27 Performed services on account and billed customers for services provided, $900.
Sept. 29 Received $550 from customers for services to be provided in the future.
Sept. 30 Paid J. Alou $800 cash for personal use.
Adjustment data consist of the following:
Supplies on hand at September 30 cost $1,000.
Accrued salaries payable at September 30 total $630.
The equipment has an expected useful life of five years.
Unearned revenue of $450 is still not earned at September 30.
Interest is payable on the first of each month.
Required -
a. Prepare T accounts and enter the August 31 balances.
b. Journalize the September transactions.
c. Post to T accounts.
d. Prepare a trial balance at September 30.
e. Journalize and post adjusting entries.
f. Prepare an adjusted trial balance at September 30.
g. Prepare an income statement and a statement of owner's equity, and a classified balance sheet.
h. Prepare and post closing entries.
i. Prepare post-closing trial balance at September 30.