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On August 1, 2022, the following were the account balances of Ayayai Repair Services. Debit Credit Cash $5,550 Accumulated Depreciation Equipment $700 Accounts Receivable 2,620 Accounts Payable 2,100 Notes Receivable 4,000 Unearned Service Revenue 1,210 Supplies 960 Salaries and Wages Payable 1,560 Equipment 9,000 Common stock 14,000 Retained Earnings 2,560 $22,130 $22,130 During August, the following summary transactions were completed. Aug. 1 Paid $500 cash for advertising in local newspapers. Advertising flyers will be included with newspapers delivered during August and September. 3 Paid August rent $390. 5 Received $1,100 cash from customers in payment on account. 10 Paid $3,260 for salaries due employees, of which $1,700 is for August and $1,560 is for July salaries payable. 12 Received $2,700 cash for services performed in August. 15 Purchased store equipment on account $2,100. 20 Paid creditors $1,900 of accounts payable due. 22 Purchased supplies on account $800. 25 Paid $2,800 cash for employees' salaries. 27 Billed customers $3,710 for services performed. 29 Received $850 from customers for services to be performed in the future. Ayayai's chart of accounts includes Prepaid Advertising, Interest Receivable, Service Revenue, Interest Revenue, Advertising Expense, Depreciation Expense, Supplies Expense, Salaries and Wages Expense, and Rent Expense. Adjustment data: 1. 2. 3. 4. A count shows supplies on hand of $1,000. Accrued but unpaid employees' salaries are $1,590. Depreciation on equipment for the month is $320. Services were performed to satisfy $900 of unearned service revenue. One month's worth of advertising services has been received. One month of interest revenue related to the $4,000 note receivable has accrued. The 4-month note has a 6% annual interest rate. (Hint: Use the formula from Illustration 3.17 to compute interest.) 5. 6. Journalize the adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 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. B&B's chart of accounts includes Prepaid Advertising, Interest Receivable, Service Revenue, Interest Revenue, Advertising Expense, 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. 1. 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. h. Journalize and post closing entries and complete the closing process. 1. Prepare a post-closing trial balance at August 31