On September 1, 2010, the following were the account balances of Pittsburg Equipment Repair. During September the
Question:
On September 1, 2010, the following were the account balances of Pittsburg Equipment Repair.
During September the following summary transactions were completed.
Sept. 8 Paid $1,100 for salaries due employees, of which $400 is for September and $700 is for August salaries payable.
10 Received $1,500 cash from customers in payment of account.
12 Received $3,400 cash for services performed in September.
15 Purchased store equipment on account $3,000.
Sept. 17 Purchased supplies on account $2,000.
20 Paid creditors $4,500 of accounts payable due.
22 Paid September rent $400.
25 Paid salaries $1,200.
27 Performed services on account and billed customers for services provided $1,850.
29 Received $650 from customers for services to be provided in the future.
Adjustment data:
1. Supplies on hand $1,800.
2. Accrued salaries payable $400.
3. Depreciation $200 per month.
4. Unearned service revenue of $250 earned.
Instructions
(a) Enter the September 1 balances in the ledger T accounts.
(b) Journalize the September transactions.
(c) Post to the ledger T accounts. Use Service Revenue, Depreciation Expense, Supplies Expense, Salaries Expense, and 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 a retained earnings statement for September and a classified balance sheet at September30.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Financial Accounting Tools for Business Decision Making
ISBN: 978-0470239803
5th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso