On September 1, 2014, the account balances of Percy Equipment Repair were as follows.

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 account.
22 Paid September rent $500.
25 Paid salaries $1,250.
27 Performed services on account and billed customers $2,100 for these services.
29 Received $650 from customers for future service.
Adjustment data consist of:
1. Supplies on hand $1,300.
2. Accrued salaries payable $300.
3. Depreciation is $100 per month.
4. Services related to unearned service revenue of $1,450 were performed.

Instructions
(a) Enter the September 1 balances in the ledger accounts.
(b) Journalize the September transactions.
(c) Post to the ledger accounts. Use J1 for the posting reference. Use the following additional accounts: No. 407 Service Revenue, No. 615 Depreciation Expense, No. 631 Supplies Expense, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.
(d) Prepare a trial balance at September 30.
(e) Journalize and post adjusting entries.
(f) Prepare an adjusted trial balance.
(g) Prepare an income statement and an owner’s equity statement for September and a balance sheet at September30.

Transcribed Image Text:

Debit No Credit No. 101 Cash 112 Accounts Receivable 3,520 201 Accounts Payable 126 Supplies 153 Equipment $4,880 154 Accumulated Depreciation-Equipment $1,500 3,400 1,400 500 18,600 $25,400 2,000 209 Uncarned Service Revenue 15,000 212 Salaries and Wages Payable 301 Owner's Capital $25,400