Question: On August 1 2014 the following were the account balances

On August 1, 2014, the following were the account balances of D&D Repair Services.

During August, the following summary transactions were completed.
Aug. 5 Received $1,200 cash from customers in payment of account.
10 Paid $3,120 for salaries due employees, of which $1,700 is for August and $1,420 is for July salaries payable.
12 Received $2,800 cash for services performed in August.
15 Purchased store equipment on account $2,000.
17 Purchased supplies on account $860.
20 Paid creditors $2,000 of accounts payable due.
22 Paid August rent $380.
25 Paid salaries $2,900.
27 Performed services worth $3,130 on account and billed customers.
29 Received $780 from customers for services to be provided in the future.
Adjustment data:
1. Supplies on hand are valued at $960.
2. Accrued salaries payable are $1,540.
3. Depreciation for the month is $320.
4. Services were performed to satisfy $800 of unearned service revenue.

(a) Enter the August 1 balances in the ledger accounts. (Use T-accounts.)
(b) Journalize the August transactions.
(c) Post to the ledger accounts. Use Service Revenue, Depreciation Expense, Supplies Expense, Salaries and Wages Expense, and Rent Expense.
(d) Prepare a trial balance at August 31.
(e) Journalize and post adjusting entries.
(f) Prepare an adjusted trial balance.
(g) Prepare an income statement and a retained earnings statement for August and a classified balance sheet at August 31.

View Solution:

Sale on SolutionInn
  • CreatedApril 07, 2014
  • Files Included
Post your question