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 depreciationequipment $1,800

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

Total $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.Create trial balance at September 30.

e.Journalize and post adjusting entries.

f.Creating an adjusted trial balance at September 30.

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

h.Creating and post closing entries.

i.make a post-closing trial balance at September 30.