Problem: On September 1, 2008, the account balances of Rand Equipment Repair, Inc. were as follows.
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No.
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Debits
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No.
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Credits
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101
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Cash
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$4,880
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154
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Accumulated Depreciation
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$1,500
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112
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Accounts Receivable
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3,520
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201
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Accounts Payable
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3,400
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126
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Supplies
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2,000
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209
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Unearned Service Revenue
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1,400
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153
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Store Equipment
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15,000
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212
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Salaries Payable
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500
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311
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Common Stock
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15,000
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320
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Retained Earnings
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3,600
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$25,400
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$25,400
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During September the following summary transactions were completed.
Sept. 8 Paid $1,400 for salaries due employees, of which $900 is for September.
10 Received $1,200 cash from customers on account.
12 Received $3,400 cash for services performed in September.
15 Purchased store equipment on account $3,000.
17 Purchased supplies on account $1,200.
20 Paid creditors $4,500 on accou.
22 Paid September rent $500.
25 Paid salaries $1,250.
27 Performed services on account and billed customers for services provided $1,500.
29 Received $650 from customers for future service.
Adjustment data consist of:
1. Supplies on hand $1,200.
2. Accrued salaries payable $400.
3. Depreciation is $100 per month.
4. Unearned service revenue of $1,450 is earned.
Instructions:
(a) Journalize the September transactions. Post to ledger accounts.
(b) Prepare a trial balance at September 30.
(c) Journalize and post adjusting entries.
(d) Prepare an adjusted trial balance.
(e) Prepare an income statement and a retained earnings statement for September and a balance sheet at September 30.
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Date
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Account/Description
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Debit
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Credit
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Sept 8
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Sept 10
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Sept 12
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Sept 15
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Sept 17
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Sept 20
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Sept 22
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Sept 25
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Sept 27
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Sept 29
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