On October 31, 2024, the account balances of Hamm Equipment Repair were as follows. During November, the
Question:
On October 31, 2024, the account balances of Hamm Equipment Repair were as follows.
During November, the following summary transactions were completed.
Nov. 8 Paid $1,700 for salaries due employees, of which $700 is for October salaries.
10 Received $3,620 cash from customers on account.
12 Received $3,100 cash for services performed in November.
15 Purchased equipment on account, $2,000.
17 Purchased supplies on account, $700.
20 Paid creditors on account, $2,700.
22 Paid November rent of $400. 22 Paid salaries of $1,700.
27 Performed services on account and billed customers for these services, $2,200.
29 Received $600 from customers for future service.
Adjustment data consist of:
1. Supplies on hand, $1,400
2. Accrued salaries payable, $350
3. Depreciation for the month is $200
4. Services related to unearned revenue of $1,220 were performed during the month
Instructions
a. Enter the October 31 balances in the ledger accounts (use T accounts).
b. Prepare and post the November transaction entries.
c. Prepare a trial balance at November 30.
d. Prepare and post the adjusting entries for the month.
e. Prepare an adjusted trial balance.
f. Prepare an income statement and a statement of owner’s equity for November and a balance sheet as at November 30.
Taking It Further
On Hamm Equipment Repair’s trial balance, Accounts Payable is $2,600. After the adjusting entries have been posted, the balance in this account is still $2,600. Since there is no change, it is not necessary to include Accounts Payable on the adjusted trial balance. Do you agree? Why or why not?
Step by Step Answer:
Accounting Principles Volume 1
ISBN: 9781119786818
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak