Alou Equipment Repair has a September 30 year end. The company adjusts and closes its accounts on an annual basis. On August 31, 2021, the account balances of Alou Equipment Repair were as follows:

ALOU EQUIPMENT REPAIR

Trial Balance

August 31, 2021

Debit

Credit

Cash$2,790

Accounts receivable7,910

Supplies8,500

Equipment9,000

Accumulated depreciationequipment$1,800

Accounts payable3,100

Unearned revenue400

J. Alou, capital21,200

J. Alou, drawings15,600

Service revenue49,600

Rent expense5,500

Salaries expense24,570

Telephone expense2,230

$76,100

$76,100

During September, the following transactions were completed:

Sept.1

Borrowed $10,000 from the bank and signed a two-year, 5% note payable.2

Paid September rent, $500.8

Paid employee salaries, $1,050.12

Received $1,500 cash from customers on account.15

Received $5,700 cash for services performed in September.17

Purchased additional supplies on account, $1,300.20

Paid creditors $2,300 on account.21

Paid September telephone bill, $200.22

Paid employee salaries, $1,050.27

Performed services on account and billed customers for services provided, $900.29

Received $550 from customers for services to be provided in the future.30

Paid J. Alou $800 cash for personal use.

Adjustment data consist of the following:

1. Supplies on hand at September 30 cost $1,000.
2. Accrued salaries payable at September 30 total $630.
3. The equipment has an expected useful life of five years.
4. Unearned revenue of $450 is still not earned at September 30.
5. Interest is payable on the first of each month.

Instructions

a.Prepare T accounts and enter the August 31 balances.

b.Journalize the September transactions.

c.Post to T accounts.

d.Prepare trial balance at September 30.

e.Journalize and post adjusting entries.

f.Prepare adjusted trial balance at September 30.

g.Prepare income statement and a statement of owner's equity, and a classified balance sheet.

h.Post closing entries.

i.Prepare post-closing trial balance at September 30