Chen’s Repair Service prepares adjustments monthly and showed the following Unadjusted Trial Balance as of September 30, 2022:

Additional information for the month ended September 30, 2022.
a. Interest of $150 had accrued on the loan payable for the month of September.
b. The office furniture was purchased on September 1, 2019, and has an estimated 10-year life. The furniture will have a salvage value of $5,000 at the end of its life.
c. A count of repair supplies revealed a balance on hand of $4,500.

d. A review of the Prepaid Insurance account showed that $5,000 was used up during September.
e. Accrued Wages of $10,000 has not been recorded at month-end.

Required:
1. Prepare journal entries for the month ended September 30, 2022 for (a) through (e) above.
2. Complete the adjusted trial balance by including the adjusting entries prepared in requirement 1.
3. Prepare an income statement, a statement of owner’s equity and a balance sheet based on the adjusted trial balance completed in requirement 2. Assume the owner, Chen Leung, made an investment during September of $5,000.

Transcribed Image Text:

Cash Accounts Receivable Repair Supplies Prepaid Insurance Office Furniture Accounts Payable Loan Payable C. Leung, Capital C. Leung, Withdrawals Repair Revenues Salaries Expense Wages Expense CHEN'S REPAIR SERVICE TRIAL BALANCE SEPTEMBER 30, 2022 Dr. 1800000 1200000 520000 935000 3500000 500000 Cr. 800000 2375000 4030000 80 0 0 0 00 5000000 1750000 15 2 050 0 0 15 20 5000