On September 1, 2010, the account balances of Rand Equipment Repair were as follows.

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) Enter the September 1 balances in the ledger accounts.

(b) Journalize the September transactions.

(c) Post to the ledger accounts. Use J1 for the posting reference. Use the following additional accounts:

No. 407 Service Revenue, No. 615 Depreciation Expense, No. 631 Supplies Expense,

No. 726 Salaries Expense, and No. 729 Rent Expense.

(d) Prepare a trial balance at September 30.

(e) Journalize and post adjusting entries.

(f) Prepare an adjusted trial balance.

(g) Prepare an income statement and an owner’s equity statement for September and a balance sheet at September 30 on the next page.

Transcribed Image Text:

Debits Credits No. 154 Accumulated Depreciation 201 Accounts Payable 209 Unearned Service Revenue 212 Salaries Payable 301 J. Rand, Capital No. Cash 101 $ 4,880 3,520 $ 1,500 112 Accounts Receivable 126 Supplies 153 Store Equipment 2,000 15,000 1,400 500 18,600 $25,400 $25,400