Alou Equipment Repair has a September 30 year end. The company adjusts and closes its accounts on an annual basis. On August 31, 2021, the account balances of Alou Equipment Repair were as follows:

During September, the following transactions were completed:

Sept. 1 Borrowed $10,000 from the bank and signed a two-year, 5% note payable.

2 Paid September rent, $500.

8 Paid employee salaries, $1,050.

12 Received $1,500 cash from customers on account.

15 Received $5,700 cash for services performed in September.

17 Purchased additional supplies on account, $1,300.

20 Paid creditors $2,300 on account.

21 Paid September telephone bill, $200.

22 Paid employee salaries, $1,050.

27 Performed services on account and billed customers for services provided, $900.

29 Received $550 from customers for services to be provided in the future.

30 Paid J. Alou $800 cash for personal use.

Adjustment data consist of the following:

1. Supplies on hand at September 30 cost $1,000.

2. Accrued salaries payable at September 30 total $630.

3. The equipment has an expected useful life of fi ve years.

4. Unearned revenue of $450 is still not earned at September 30.

5. Interest is payable on the fi rst of each month.

Instructions

a. Prepare T accounts and enter the August 31 balances.

b. Journalize the September transactions.

c. Post to T accounts.

d. Prepare a trial balance at September 30.

e. Journalize and post adjusting entries.

f. Prepare an adjusted trial balance at September 30.

g. Prepare an income statement and a statement of owner?s equity, and a classifi ed balance sheet.

h. Prepare and post closing entries.

i. Prepare post-closing trial balance at September 30.

Transcribed Image Text:

ALOU EQUIPMENT REPAIR Trial Balance August 31, 2021 Debit Credit Cash $ 2,790 Accounts receivable 7,910 Supplies Equipment Accumulated depreciation-equipment Accounts payable 8,500 9,000 $ 1,800 3,100 Unearned revenue 400 J. Alou, capital J. Alou, drawings 21,200 15,600 Service revenue 49,600 5,500 Rent expense Salaries expense Telephone expense 24,570 2,230 $76,100 $76,100