On September 1, 2007, the following were the account balances of Tech Know Equipment Repair. Debits Credits
Question:
On September 1, 2007, the following were the account balances of Tech Know Equipment Repair.
Debits Credits Cash $ 4,880 Accumulated Depreciation $ 1,600 Accounts Receivable 3,820 Accounts Payable 3,100 Supplies 800 Unearned Service Revenue 400 Store Equipment 15,000 Salaries Payable 700
$24,500 Common Stock 10,000 Retained Earnings 8,700
$24,500 During September the following summary transactions were completed.
Sept. 8 Paid $1,100 for salaries due employees, of which $400 is for September and $700 is for August salaries payable.
10 Received $1,500 cash from customers in payment of account. 12. Received $3,400 cash for services performed in September.
15 Purchased store equipment on account $3,000.
Problems: Set B 209 Sept. 17 Purchased supplies on account $1,500.
20 Paid creditors $4,500 of accounts payable due.
22 Paid September rent $400.
25 Paid salaries $1,200.
27 Performed services on account and billed customers for services provided
$850.
29 Received $650 from customers for services to be provided in the future.
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.
Instructions
(a) Enter the September 1 balances in the ledger 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.
(f) Tot. trial balance $29,300
(g) Prepare an income statement and a retained earnings statement for September and __(g) Tot. assets $24,400 a classified balance sheet at September 30.
Step by Step Answer:
Financial Accounting Tools For Business Decision Making
ISBN: 9780471730514
4th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso