On November 1, 2014, the account balances of Samone Equipment Repair, Inc. were as follows.

During November, the following summary transactions were completed.
Nov. 8 Paid $1,500 for salaries due employees, of which $700 is for October salaries.
10 Received $3,420 cash from customers on account.
12 Received $3,100 cash for services performed in November.
15 Purchased equipment on account $2,000.
17 Purchased supplies on account $700.
20 Paid creditors on account $2,700.
22 Paid November rent $500.
25 Paid salaries $1,500.
27 Performed services on account and billed customers for services provided $1,900.
29 Received $350 from customers for future service.
Adjustment data consist of:
1. Supplies on hand $1,400.
2. Accrued salaries payable $350.
3. Depreciation for the month is $200.
4. Unearned service revenue of $1,380 is recognized for services performed.

Instructions
(a) Enter the November 1 balances in the ledger accounts.
(b) Journalize the November transactions.
(c) Post to the ledger accounts. Use J1 for the posting reference. Use the following additional accounts: No. 400 Service Revenue, No. 631 Supplies Expense, No. 711 Depreciation Expense, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.
(d) Prepare a trial balance at November 30.
(e) Journalize and post adjusting entries.
(f) Prepare an adjusted trial balance.
(g) Prepare an income statement and a retained earnings statement for November and a balance sheet at November30.

Transcribed Image Text:

Debits No. 101 Cash 112 Accounts Receivable 4,450 201 Accounts Payable 126 Supplies 157 Equipment No Credits s 2,400 158 Accumulated Depreciation-Equipment 2,000 2,600 1,360 700 10,000 7,990 209 Unearned Service Revenue 1,800 16,000 212 Salaries and Wages Payable 311 Common Stock 320 Retained Earnings $24,650 $24,650