Question
Blue Equipment Repair began operating in September 2022. It prepares financial statements at the end of each month. On November 1, 2022, a tabular summary
Blue Equipment Repair began operating in September 2022. It prepares financial statements at the end of each month. On November 1, 2022, a tabular summary includes the following information. Note that Blue began the month with $ 2,460 in Retained Earnings. This balance represents the results of its first two months of business.
Assets | = | Liabilities | + | Stockholders Equity | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cash | + | Accts. Rec. | + | Supplies | + | Equip. | - | Acc. Depr.- Equip. | = | Accts. Pay. | + | Unearn. Serv. Rev. | + | Sal./Wages Pay. | + | Com. Stock | + | Retained Earnings | |||||||
11/1 Bal. | 2,288 | + | 2,386 | + | 918 | + | 8,200 | - | 410 | = | 1,886 | + | 328 | + | 508 | + | 8,200 | + | 2,460 |
During November, the following summary transactions were completed.
Nov. 8 | Paid $ 1,000 for salaries due employees, of which $ 492 is for November and $ 508 is for October salaries payable. | |
10 | Received $ 1,476 cash from customers in payment of account. | |
12 | Received $ 3,034 cash for services performed in November. | |
15 | Purchased store equipment on account $ 2,952. | |
17 | Purchased supplies on account $ 1,066. | |
20 | Paid creditors $ 2,050 of accounts payable due. | |
22 | Paid November rent $ 394. | |
25 | Paid salaries $ 820. | |
27 | Performed services on account worth $ 738 and billed customers. | |
29 | Received $ 615 from customers for services to be performed in the future. |
Adjustment data:
1. | Supplies on hand are valued at $ 902. | |
2. | Accrued salaries payable are $ 394. | |
3. | Depreciation for the month is $ 205. | |
4. | Services were performed to satisfy $ 410 of unearned service revenue. |
Prepare an income statement for November 30.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started