Refer to the data for Rijo Equipment Repair Corp. in P4-8B. Assume that Rijo closes its books monthly.

In P4-8B

On August 31, 2012, the Rijo Equipment Repair Corp.'s post-closing trial balance was as follows. The company prepares its adjusting entries monthly.

During September, the following transactions were completed:
Sept. 4. Paid employees $2,200 for salaries due, of which $800 was for September salaries payable and $1,400 for August.
6 Received $2,400 cash from customers in payment of accounts.
11 Received $8,800 cash for services performed in September.
12 Sold common shares for $5,000.
17 Purchased supplies on account, $2,000.
21 Paid creditors $7,000 of accounts payable due.
24 Paid September and October rent $2,000 ($1,000 per month).
25 Paid salaries, $2,200.
26 Performed services on account, $1,600.
27 Received $1,300 from customers for services to be provided in the future.
28 Declared and paid a dividend, $500.
28 Paid income tax for the month, $600.
Adjustment data for the month:
1. Supplies on hand total $1,200.
2. Accrued salaries payable are $1,600.
3. Accrued service revenue for $600.
4. The equipment has a useful life of 10 years.
5. Unearned revenue of $800 has been earned.
Instructions
(a) Prepare the closing journal entries.
(b) Post the closing entries to the T accounts prepared in P4-8B.
(c) Prepare a post-closing trial balance at September 30.

Transcribed Image Text:

RIJO EQUIPMENT REPAIR CORP Post-Closing Trial Balance August 31,2012 Debit $ 9,760 7,440 1,600 30,000 Credit Cash Accounts receivable Supplies Equipment Accumulated depreciation-equipment Accounts payable Salaries payable Unearned revenue Common shares Retained earnings $ 3,000 6,200 1,400 800 20,000 17,400 $48,800 $48,800