Reference no: EM132711215
Question - On September 1, 20X1, the account balances of Rand Equipment Repair, Inc. were as follows.
No. Debits No. Credits
101 Cash £14,580 154 Accumulated Depreciation £1,500
112 Accounts Receivable 3,520 201 Accounts Payable 3,400
126 Supplies 2,000 210 Notes Payable 10,000
131 Prepaid Insurance 300 212 Unearned Service Revenue 1,400
153 Store Equipment 15,000 213 Salaries Payable 500
311 Share Capital-Ordinary 15,000
320 Retained Earnings 3,600
£35,400 £35,400
Sept. 8 Paid £1,300 for salaries due employees, of which £800 is for September.
Sept. 9 Shareholders invested £10,000 cash in the business in exchange for ordinary shares.
Sept. 10 Received £1,000 cash from customers for services billed in August.
Sept. 12 Received £3,200 cash for services performed in September.
Sept. 15 Purchased store equipment by cash £3,000.
Sept. 17 Purchased supplies on account £1,100.
Sept. 20 Paid £4,000 for accounts payable due.
Sept. 25 Paid salaries £1,150 for September.
Sept. 27 Performed services on account and billed customers for services provided £1,800.
Sept. 28 Declared and paid a £600 cash dividend.
Sept. 29 Received £750 from customers for future service.
Sept. 30 Paid rent £1500 for 1 September to 30 November.
Adjustment data consist of:
1. A count of supplies on September 30, 20X1 indicates that supplies on hand £1,300.
2. Accrued salaries payable £800.
3. Depreciation is £150 per month.
4. Unearned service revenue on 30 September is £1,500.
5. The prepaid insurance is the cost of a fully paid 12-month insurance policy, effective January 1, 20X1.
6. There is only one note payable which is a £10,000 18%, 9-month note dated September 1, 20X1. (Note: 18% is the annual rate)
Required - Prepare Journal and Trial Balance?