FEBRERO e. Explain the generally accepted accounting principles that Betty did not recognize in preparing her income statement and their effect on her results. P4-7A (LO 2. 3. 4), AP on November 1, 2022, the following were the account balances of Soho Equipment Repair Journaline transactions and follow through accounting gele to preparation of financial statements. GLS 10 Debit Credit Cash $ 2.790 Accumulated Depreciation Equipment $ 500 Accounts Receivable 2,910 Accounts Payable 2.300 Supplies 1,120 Unred Service Revenue 400 Equipment 10,000 Salaries and Wages Payable 620 Common Stock 10,000 Retained Earnings 3.000 $16,820 $16.820 During November, the following summary transactions were completed. Nov. 8 Paid $1,220 for salaries due employees, of which $600 for November and $620 is for October salaries payable. Received $1.800 cash from customers in payment of account. 12 Received $3.700 cash for services performed in November 15 Purchased store equipment on account $3,600 17 Purchased supplies on account $1.300. 20 Paid creditors $2.500 of accounts payable due 22 Paid November rent $480. 25 Paid salaries S1000 27 Performed services on account worth $900 and billed customers. 20 Received $750 from customers for services to be performed in the future Adjustment data 1. Supplies on hand are valued at $1,100. 2. Accrued salaries payable are $480. 3. Depreciation for the month is $250. 4. Services were performed to satisfy $300 of unearned service revenue Instructions 3. Depreciation for the month is $250. 4. Services were performed to satisfy $500 of unearned service revenue. Instructions a. Enter the November 1 balances in the ledger accounts. (Use T-accounts.) b. Journalize the November transactions. c. Post to the ledger accounts. Use Service Revenue, Depreciation Expense, Supplies Expense, Salaries and Wages Expense, and Rent Expense. d. Prepare a trial balance at November 30. e. Journalize and post adjusting entries. f. Prepare an adjusted trial balance. Cash Tot, adj. trial balance $3,840 $24.680 g. Prepare an income statement and a retained earnings statement for November and a classified balance sheet at November 30. Net income $970 Continuing Case Cookie Creations FEBRERO e. Explain the generally accepted accounting principles that Betty did not recognize in preparing her income statement and their effect on her results. P4-7A (LO 2. 3. 4), AP on November 1, 2022, the following were the account balances of Soho Equipment Repair Journaline transactions and follow through accounting gele to preparation of financial statements. GLS 10 Debit Credit Cash $ 2.790 Accumulated Depreciation Equipment $ 500 Accounts Receivable 2,910 Accounts Payable 2.300 Supplies 1,120 Unred Service Revenue 400 Equipment 10,000 Salaries and Wages Payable 620 Common Stock 10,000 Retained Earnings 3.000 $16,820 $16.820 During November, the following summary transactions were completed. Nov. 8 Paid $1,220 for salaries due employees, of which $600 for November and $620 is for October salaries payable. Received $1.800 cash from customers in payment of account. 12 Received $3.700 cash for services performed in November 15 Purchased store equipment on account $3,600 17 Purchased supplies on account $1.300. 20 Paid creditors $2.500 of accounts payable due 22 Paid November rent $480. 25 Paid salaries S1000 27 Performed services on account worth $900 and billed customers. 20 Received $750 from customers for services to be performed in the future Adjustment data 1. Supplies on hand are valued at $1,100. 2. Accrued salaries payable are $480. 3. Depreciation for the month is $250. 4. Services were performed to satisfy $300 of unearned service revenue Instructions 3. Depreciation for the month is $250. 4. Services were performed to satisfy $500 of unearned service revenue. Instructions a. Enter the November 1 balances in the ledger accounts. (Use T-accounts.) b. Journalize the November transactions. c. Post to the ledger accounts. Use Service Revenue, Depreciation Expense, Supplies Expense, Salaries and Wages Expense, and Rent Expense. d. Prepare a trial balance at November 30. e. Journalize and post adjusting entries. f. Prepare an adjusted trial balance. Cash Tot, adj. trial balance $3,840 $24.680 g. Prepare an income statement and a retained earnings statement for November and a classified balance sheet at November 30. Net income $970 Continuing Case Cookie Creations