a. On August 1, 2020, the following were the account balances of Sheffield Repair Services.

		Debit				Credit
Cash		$6,400		Accumulated DepreciationEquipment		640
Accounts Receivable		3,080		Accounts Payable		2,440
Notes Receivable		4,200		Unearned Service Revenue		1,340
Supplies		1,090		Salaries and Wages Payable		1,510
Equipment		10,600		Owner's Capital		19,440
		25,370				25,370

During August, the following summary transactions were completed.

Aug. 1		Paid $420 cash for advertising in local newspapers. Advertising flyers will be included with newspapers delivered during August and September.
3		Paid August rent $400.
5		Received $1,270 cash from customers in payment of account.
10		Paid $3,310 for salaries due employees, of which $1,800 is for August and $1,510 is for July salaries payable.
12		Received $2,970 cash for services performed in August.
15		Purchased store equipment on account $2,120.
20		Paid creditors $2,120 of accounts payable due.
22		Purchased supplies on account $850.
25		Paid $3,070 cash for employees salaries.
27		Billed customers $3,990 for services performed.
29		Received $830 from customers for services to be performed in the future.

Enter the August 1 balances in the ledger accounts.

Journalize the August transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Post to the ledger accounts.

Prepare a trial balance at August 31.

b. Adjustment data:

1.		A count shows supplies on hand of $1,020.
2.		Accrued but unpaid employees salaries are $1,630.
3.		Depreciation on equipment for the month is $340.
4.		Services were performed to satisfy $850 of unearned service revenue.
5.		One months worth of advertising services has been received.
6.		One month of interest revenue related to the $4,200 note receivable has accrued. The 4-month note has a 6% annual interest rate.

Journalize and post adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

\Prepare an adjusted trial balance.

Prepare an income statement for August.

Prepare an owners equity statement for August.

Prepare a classified balance sheet at August 31. (List Current Assets in order of liquidity.)

Journalize the closing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Post closing entries and complete the closing process. (For accounts that have zero ending balance, the entry should be the balance date and zero for the amount. Post entries in the order of journal entries presented.)

Prepare a post-closing trial balance at August 31.