On August 31, 2021, the account balances of Pitre Equipment Repair were as follows:

The company adjusts its accounts on a monthly basis. Adjustment data consist of the following:

1. Supplies on hand at September 30 cost $1,280.

2. Accrued salaries payable at September 30 total $775.

3. Equipment has an expected useful life of five years.

4. Services related to the unearned revenue of $400 are still not provided at September 30.

5. Interest is payable on the first of each month.

Instructions

a. Enter the August 31 balances in the general ledger accounts.

b. Journalize the September transactions.

c. Post to the ledger accounts.

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 statement of owner?s equity for September, and a balance sheet.

Transcribed Image Text:

PITRE EQUIPMENT REPAIR Trial Balance August 31, 2021 Debit Credit Cash $ 1,880 Accounts receivable Supplies Equipment Accumulated depreciation-equipment Accounts payable 3,720 800 15,000 $ 1,500 3,100 Unearned revenue 400 Salaries payable R. Pitre, capital 700 15,700 $21,400 $21,400