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 $600 is for November and $620 is for October salaries payable.
•10 Received $1,800 cash from customers in payment of account.
•12 Received $3,700 cash for services performed in November.
•15 Purchased store equipment on account $3,600.
•17 Purchased supplies on account $1,300.
•20 Paid creditors $2,500 of accounts payable due.
•22 Paid November rent $480.
•25 Paid salaries $1,000.
•27 Performed services on account worth $900 and billed customers.
•29 Received $750 from customers for services to be provided 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.