On August 1, 2014, the following were the account balances of D&D Repair Services.

Debit Credit Cash $ 6,040 Accumulated Depreciation—-Equipment $ 600 Accounts Receivable 2,910 Accounts Payable 2,300 Supplies 1,030 Unearned Service Revenue 1,260 Equipment 10,000 Salaries and Wages Payable 1,420 Common Stock 10,000 Retained Earnings 4,400

$19,980 $19,980 During August, the following summary transactions were completed.

Aug. 5 Received $1,200 cash from customers in payment of account.

10 Paid $3,120 for salaries due employees, of which $1,700 is for August and

$1,420 is for July salaries payable.

12 Received $2,800 cash for services performed in August.

15 Purchased store equipment on account $2,000.

17 Purchased supplies on account $860.

20 Paid creditors $2,000 of accounts payable due.

22 Paid August rent $380.

25 Paid salaries $2,900.

27 Performed services worth $3,130 on account and billed customers.

29 Received $780 from customers for services to be provided in the future.

Adjustment data:

1 Supplies on hand are valued at $960.

2 Accrued salaries payable are $1,540.

3 Depreciation for the month is $320.

4 Services were performed to satisfy $800 of unearned service revenue.

Instructions

(a) Enter the August 1 balances in the ledger accounts. (Use T-accounts.)

(b) Journalize the August transactions.

(c) Post to the ledger accounts. Use Service Revenue, Depreciation Expense, Supplies Expense, Salaries and Wages Expense, and Rent Expense.

(d) Prepare a trial balance at August 31.

(e) Journalize and post adjusting entries.

(f) Prepare an adjusted trial balance.
(g) Prepare an income statement and a retained earnings statement for August and a classified balance sheet at August 31.AppendixLO1