On November 1, 2010, the following were the account balances of Montana Equipment Repair.

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 $1,500 cash from customers in payment of account.
12 Received $1,700 cash for services performed in November.
15 Purchased store equipment on account $4,000.
17 Purchased supplies on account $1,300.
20 Paid creditors $2,500 of accounts payable due.
22 Paid November rent $450.
25 Paid salaries $1,000.
27 Performed services on account and billed customers for services provided $900.
29 Received $550 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. Unearned service revenue of $300 is earned.

Instructions
(a) Enter the November 1 balances in the ledger accounts. (Use T accounts.)
(b) Journalize the November transactions.
(c) Post to the ledger accounts. Use Service Revenue, Depreciation Expense, Supplies Expense, Salaries Expense, and 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 classified balance sheet at November30.

Transcribed Image Text:

Credits 2,790 Accumulated Depreciation 500 2,300 400 620 10,000 3,000 $16,820 Debits Cash Accounts Receivable Supplies Store Equipment Accounts Payable Unearned Service Revenue Salaries Payable Common Stock Retained Earnings 2,910 1,120 10,000 $16,820