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 receivable $7,910

Supplies $8,500

Equipment $9,000

Accumulated depreciation $1,800

equipment

Accounts payable $3,100

Unearned revenue $400

J. Alou, capital $21,200

J. Alou, drawings $15,600

Service revenue $49,600

Rent expense $5,500

Salaries expense $24,570

Telephone expense $2,230

$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.

Sept. 2

Paid September rent, $500.

Sept. 8

Paid employee salaries, $1,050.

Sept. 12

Received $1,500 cash from customers on account.

Sept. 15

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

Sept. 17

Purchased additional supplies on account, $1,300.

Sept. 20

Paid creditors $2,300 on account.

Sept. 21

Paid September telephone bill, $200.

Sept. 22

Paid employee salaries, $1,050.

Sept. 27

Performed services on account and billed customers for services provided, $900.

Sept. 29

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

Sept. 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. Make T accounts and enter the August 31 balances.

b. Journalize the September transactions.

c. Post to T accounts.

d. Make a trial balance at September 30.

e. Journalize and post adjusting entries.

f. Make an adjusted trial balance at September 30.

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

h. Make and post closing entries.

i. Prepare post-closing trial balance at September 30.