Problem:
On November 1, 2006, the account balances of Samone Equipment Repair Corp. were as follows.
No. Debits No. Credits
101 Cash $ 2,790 154 Accumulated Depreciation $ 500
112 Accounts Receivable 2,510 201 Accounts Payable 2,100
126 Supplies 2,000 209 Unearned Service Revenue 1,400
153 Store Equipment 10,000 212 Salaries Payable 500
311 Common Stock 10,000
320 Retained Earnings 2,800
=$17,300 =$17,300
During November the following summary transactions were completed.
Nov. 8 Paid $1,100 for salaries due employees, of which $600 is for November.
10 Received $1,200 cash from customers on account.
12 Received $1,400 cash for services performed in November.
15 Purchased store equipment on account $3,000.
17 Purchased supplies on account $500.
20 Paid creditors on account $2,500.
22 Paid November rent $300.
25 Paid salaries $1,000.
27 Performed services on account and billed customers for services provided $700.
29 Received $550 from customers for future service.
Adjustment data consist of:
1. Supplies on hand $1,000.
2. Accrued salaries payable $500.
3. Depreciation for the month is $120.
4. Unearned service revenue of $1,150 is earned.
Instructions:
(a) Enter the November 1 balances in the ledger accounts.
(b) Journalize the November transactions.
(c) Post to the ledger accounts. Use J1 for the posting reference. Use the following accounts:
No. 407 Service Revenue,No. 615 Depreciation Expense,No. 631 Supplies Expense, No. 726 Salaries Expense, and No. 729 Rent Expense.
(d) Prepare a trial balance at November 30.
(e) Journalize and post adjusting entries.
(f) Prepare an adjusted trial balance.
(g) Prepare an income statement and a retained earnings statement for November and a balance sheet at November 30.