John?s Repair Service prepares adjustments monthly and showed the following Unadjusted Trial Balance as of September 30, 2019:

Additional information for the month ended September 30, 2019: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, 2019 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, John Murray, made an investment during September of $5,000.

Transcribed Image Text:

JOHN'S REPAIR SERVICE TRIAL BALANCE SEPTEMBER 30, 2019 Dr. Cr. 18 00000 1 200000 Cash Accounts Receivable Repair Supplies Prepaid Insurance 5 20000 9 35000 3 5 00000 Office Furniture 8 00000 2 375000 Accounts Payable Loan Payable J. Murray, Capital J. Murray, Withdrawals Repair Revenues Salaries Expense Wages Expense 4 030000 5 00000 8000000 5 000000 17 50000 15 20500 0 15 2050 00