Journalize transactions and follow through accounting cycle to preparation of financial statements. On November 1, 2014, the following were the account balances of Rijo Equipment Repair.
Debit Credit
Cash $?2,790 Accumulated Depreciation
Equipment $???500
Accounts Receivable 2,910 Accounts Payable 2,300
Supplies 1,120 Unearned Service Revenue 400
Equipment 10,000 Salaries and Wages Payable 620
Common Stock 10,000
Retained Earnings 3,000
$16,820 $16,820
During November, the following summary transactions were completed.
Nov. 8 Paid $1,220 for salaries due employees, of which $390 is for November and $830 is for October salaries payable.
10 Received $1,860 cash from customers in payment of account.
12 Received $3,810 cash for services performed in November.
15 Purchased store equipment on account $3,900.
17 Purchased supplies on account $1,360.
20 Paid creditors $2,600 of accounts payable due.
22 Paid November rent $450.
25 Paid salaries $1,080.
27 Performed services on account worth $970 and billed customers.
29 Received $750 from customers for services to be performed in the future.
Adjustment data:
1. Supplies on hand are valued at $1,100.
2. Accrued salaries payable are $480.
3. Depreciation for the month is $250.
4. Services were performed to satisfy $500 of unearned service revenue.
Instructions:
1. Enter the November 1 balances in the ledger accounts. (Use T-accounts.)
2. Journalize the November transactions.
3. Post to the ledger accounts. Use Service Revenue, Depreciation Expense, Supplies Expense, Salaries and Wages Expense, and Rent Expense.
4. Prepare a trial balance at November 30.
5. Journalize and post adjusting entries.
6. Prepare an adjusted trial balance.
(f) Cash $3,840
Tot. adj. trial balance $24,680
7. Prepare an income statement and a retained earnings statement for November and a classified balance sheet at November 30.
(g) Net income $970