On September 1, 1998, the following were the account balances of Rijo Equipment Repair: During September the
Question:
On September 1, 1998, the following were the account balances of Rijo Equipment Repair:
During September the following summary transactions were completed:
Sept. 8 Paid \(\$ 1,100\) for salaries due employees, of which \(\$ 600\) 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 \(\$ 1,500\).
20 Paid creditors \(\$ 4,500\) on account.
22 Paid September rent \(\$ 500\).
25 Paid salaries \(\$ 1,050\).
27 Performed services on account and billed customers for services rendered \(\$ 900\).
29 Received \(\$ 650\) from customers for future service.
Adjustment data:
1. Supplies on hand \(\$ 1,800\).
2. Accrued salaries payable \(\$ 400\).
3. Depreciation \(\$ 200\) per month.
4. Unearned service revenue of \(\$ 350\) earned.
\section*{Instructions}
(a) Enter the September 1 balances in the ledger \(\mathrm{T}\) accounts.
(b) Journalize the September transactions.
(c) Post to the ledger T accounts. Use Service Revenue, Depreciation Expense, Supplies Expense, Salaries Expense, and 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 a retained earnings statement for September and a balance sheet at September 30.
Step by Step Answer:
Financial Accounting Tools For Business Decision Making
ISBN: 9780471169192
1st Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso