Journalise transactions and follow through accounting odle to preparation of financial statements GLS ACR43 (LO 2, 3, 4), AP On August 1, 2022, the following were the account balances of B&B Repair Services Debit Credit Cash $ 6,040 Accumulated Depreciation --Equipment $ 600 Accounts Receivable 2,910 Accounts Payable 2,300 Notes Receivable 4,000 Unearnod Service Revenue 1.260 Supplies 1.030 Salaries and Wages Payable 1.420 Equipment 10,000 Common Stock 12.000 Retained Earnings 6,400 $23,980 $23.980 During August, the following summary transactions were completed. Aug 1 Paid $400 cash for advertising in local newspapers. Advertising flyers will be included with newspapers delivered during August and September 3 Paid August rent $380. 5 Received $1.200 cash from customers in payment of account. 10 Paid $3,120 for salaries due employees, of which $1.700 is for August and $1,420 is for July salaries payable 12 Received $2,800 cash for services performed in August 15 Purchased store equipment on account $2,000. 20 Paid creditors $2,000 of accounts payable due. 22 Purchased supplies on account $800. 25 Paid $2,900 cash for employees' salaries 27 Billed customers $3,760 for services performed. 29 Received $780 from customers for services to be performed in the future. Adjustment data: 1. A count shows supplies on hand of $960. 2. Accrued but unpaid employees' salaries are $1.540. 3. Depreciation on equipment for the month is $320. 4. Services were performed to satisfy $of unearned service revenue. 5. One month's worth of advertising services has been received 6. One month of interest revenue related to the $4.000 note receivable has accrued. The 4-month note has a 6 annual interest rate. (Hint: Use the formula from Illustration 4.19 to compute interest.) 4-62 CHAPTER 4 Accrual Accounting Concepts 6. Salaries for the second half of July, 511,000, to be paid on August 1. 7. Estimated utilities expense for July, 5800 (invoice will be received in August). 8. Income tax for July, 51,200, will be paid in August. The chant of accounts for Green River Computer Consultants contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance. Prepaid Rent, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Notes Puyable, Interest Payable, Income Taxes Payable, Salaries and Wages Payable, Unearned Service Revenue, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense. Advertising Expense, Income Tax Expense, Interest Expense, Rent Expense, and Utilities Expense Instructions Enter the July 1 bulances in the ledger accounts. (Use T-accounts) b. Journaline the July transactions. Post to the ledger accounts d. Prepare a trial balance at July 31. e. Journaline and post adjusting entries for the month ending July 31. 1. Prepare an adjusted trial balance Prepare an income statement and a retained earning statement for July and a classified balance sheet at July 31 h. Journalist and post closing entries and complete the closing process Prepare posting trial balance at July 31 Net income Tot, assets SG 770 599,670
