Soho Equipment Repair began operating in September 2017. It prepares financial statements at the end of each
Question:
Soho Equipment Repair began operating in September 2017. It prepares financial statements at the end of each month. On November 1, 2017, a tabular summary includes the following information. Note that Soho began the month with $3,000 in Retained Earnings. This balance represents the results of its first two months of business.
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During November, the following summary transactions were completed.
Nov. 8 Paid $1,220 for salaries due employees, of which $600 is for November and $620 is for October salaries payable.    
10 Received $1,800 cash from customers in payment of account.    
12 Received $3,700 cash for services performed in November.    
15 Purchased store equipment on account $3,600.    
17 Purchased supplies on account $1,300.    
20 Paid creditors $2,500 of accounts payable due.    
22 Paid November rent $480.    
25 Paid salaries $1,000.    
27 Performed services on account worth $900 and billed customers.    
29 Received $750 from customers for services to be performed in the future.
Adjustment data:
1. Supplies on hand are valued at $1,100.
2. Accrued salaries payable are $480.
3. Depreciation for the month is $250.
4. Services were performed to satisfy $500 of unearned service revenue. Instructions
Use the tabular summary below to complete the following.
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(a) Record the November transactions. Include explanations for amounts in the revenue or expense column.
(b) Compute the balance in each column after recording the November 29 transaction.
(c) Record adjustments.
(d) Compute the adjusted balance in each column.
(e) Prepare an income statement and a retained earnings statement for November and a classified balance sheet at November 30.
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Step by Step Answer:
Assets Liabilities Stockholder Equity ad Cash Accts Rec Supplies Equip Accum DeprEquip Accts Pay Unearned Serv Rev Sal Wages Pay Com Stock Retained Ea...View the full answer
