n September 1, 2010, the account balances of Rand Equipment Repair, Inc. were as follows.

No.		Debits			No.		Credits
101		Cash	14,780		152		Accumulated Depreciation	1,500
111		Accounts Receivable	3,320		201		Accounts Payable	3,400
125		Supplies	2,000		202		Notes Payable	10,000
132		Prepaid Insurance	300		204		Unearned Service Revenue	1,400
153		Store Equipment	15,000		205		Salaries Payable	500
					310		Share Capital-Ordinary	16,000
					320		Retained Earnings	2,600
			35,400					35,400

During September the following summary transactions were completed.

Sept. 8 Paid 1,300 for salaries due employees, of which 800 is for September.

9 Shareholders invested 10,000 cash in the business in exchange for ordinary shares.

10 Received 1,000 cash from customers for services billed in August.

12 Received 3,200 cash for services performed in September.

15 Purchased store equipment on account 3,000.

17 Purchased supplies on account 1,100.

20 Paid 4,000 for accounts payable due.

25 Paid salaries 1,150 for September.

27 Performed services on account and billed customers for services provided 1,400.

28 Declared and paid a 600 cash dividend.

29 Received 750 from customers for future service.

30 Paid rent 1500 for 1 September to 30 November.

Adjustment data consist of:

1. A count of supplies on September 30, 2010 indicates that supplies on hand 1,300.
2. Accrued salaries payable 600.
3. Depreciation is 150 per month.
4. Unearned service revenue of 1,700 is earned.
5. The prepaid insurance is the cost of a fully paid 6-month insurance policy, effective May 1, 20X1.
6. There is only one note payable which is a 10,000 12%, 9-month note dated September 1, 20X1. (Note: 12% is the annual rate)

Instructions

1. Enter the September 1 balances in the ledger accounts. (for your own reference)
2. Journalize the September transactions. Use the following additional accounts: No.133 Prepaid Rent No.211 Interest Payable No.331 Dividends No.400 Service Revenue, No.615 Depreciation Expense, No.617 Interest Expense, No. 618 Insurance Expense, No.631 Supplies Expense, No.726 Salaries Expense, and No.729 Rent Expense.
3. Post to the ledger accounts. (for your own reference)
4. Prepare a trial balance at September 30.
5. Journalize and post adjusting entries. (the posting is for your own reference)
6. Prepare an adjusted trial balance. (for your own reference)
7. Prepare an income statement and a retained earnings statement for September and a statement of financial position as at September 30.