On September 1, 2008, the account balances of Rand Equipment Repair were as follows.

During September the following summary transactions were completed.

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 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.

Transcribed Image Text:

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