On November 1, 2014, the following were the account balances of Rijo Equipment Repair.

Debit Credit Cash $ 2,790 Accumulated Depreciation—Equipment $ 500 Accounts Receivable 2,910 Accounts Payable 2,300 Supplies 1,120 Unearned Service Revenue 400 Equipment 10,000 Salaries and Wages Payable 620 Common Stock 10,000 Retained Earnings 3,000

$16,820 $16,820 During November, the following summary transactions were completed.

Nov. 8 Paid $1,220 for salaries due employees, of which $600 is for November and

$620 is for October salaries payable.

10 Received $1,800 cash from customers in payment of account.

12 Received $3,700 cash for services performed in November.

15 Purchased store equipment on account $3,600.

17 Purchased supplies on account $1,300.

20 Paid creditors $2,500 of accounts payable due.

22 Paid November rent $480.

25 Paid salaries $1,000.

27 Performed services on account worth $900 and billed customers.

29 Received $750 from customers for services to be provided in the future.

Adjustment data:

1 Supplies on hand are valued at $1,100.

2 Accrued salaries payable are $480.

3 Depreciation for the month is $250.

4 Services were performed to satisfy $500 of unearned service revenue.

Instructions

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

(b) Journalize the November 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 November 30.

(e) Journalize and post adjusting entries.

(f) Prepare an adjusted trial balance.

(g) Prepare an income statement and a retained earnings statement for November and a classified balance sheet at November 30.

AppendixLO1