On August 1,2019, the following were the account balances of B&B Repair Services. Credit Debit 6,040 Accumulated Depreciation-Equipment $ 600 Cash Accounts Receivable Notes Receivable Supplies Equipment 2,910 4,000 1,030 10,000 Accounts Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings 2,300 1,260 1,420 12,000 6,400 $23,980 $23,980 During August, the following summary transactions were completed. Paid $400 cash for advertising in local newspapers. Advertising flyers will be included with newspapers delivered during August and September. Paid August rent $380. Received $1,200 cash from customers in payment on account. Paid $3,120 for salaries due employees, of which $1,700 is for August and $1,420 is for July salaries payable. Received $2,800 cash for services performed in August. Purchased store equipment on account $2,000. Paid creditors $2,000 of accounts payable due. Aug. 1 3 5 10 12 15 20 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 $800 of unearned service revenue. .5.One month's worth of advertising services has been received. 6.0ne 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 3-17 to compute interest.) Instructions a. Enter the August 1 balances in the ledger accounts. (Use T-accounts.) b. Journalize the August transactions. c. Post to t Service Revenue, Interest Revenue, Advertising Expense, Depreciation Expense, Supplies Expense, Salaries and Wages Expense, and Rent Expense. d. Prepare a trial balance at August 31. e. Journalize and post adjusting entries. f. Prepare an adjusted trial balance he ledger accounts. B&B's chart of accounts includes Prepaid Advertising, Interest Receivable, g Prepare an income statement and a retained earnings statement for August and a classified balance sheet at August 31. h. journalize and post closing entries and complete the closing process. i. Prepare a post-closing trial balance at August 31. General Journal Account Titles 12 17 31 31 34 35 36 38 39 Printed at Canden County College Date ACCOUNTS PAYABLE 28/1 Bal. 6,0400 120 2,0008/1 Bal.2,300 2 400 15 1200113.. 370 0 3,120 d2g TY120 2,000 15 2000 3 22, Yo 12 2,00 UNEARNED SERVICE REVENUE 7 2 1 103/1 Bal 2,910 815 ,AOD 1127 3,7 SALARIES AND WAGES PAYABLE 12 1,42018/1 Bal. 1.420113 7129 70 14 NOTES RECEIVABLE 15 8/1 Ba. 63lbat 4.000 4,000 16 COMMON STOCK INTEREST RECEVABLE 8/1 Bal. 12,000 18 3l bal. 12,009 131 bal 4,00 RETAINED EARNINGS 5018/1Bal 6,400| 22 I3loal. 123 VIST SUPPLIES 2318/1 Bal. 10001Y131 81 122 0 INCOME SUMMARY PREPAID ADVERTISING 131 200 SERVICE REVENUE EQUIPMENT 10,000 31 32 8/1 Bal. 3 2.00 38131 bal. 12,000 361 ACCUMULATED DEPRECIATION . 8131 1,3U0 131 7001:4 INTEREST REVENUE EQUIPMENT 8/1 Bal 600 320 Printed at Canden County Collese (a),(c)&(e) (Continued) RENT EXPENSE d131 bal. 3203 310 SUPPLIES EXPENSE ADVERTISING EXPENSE 10 911 SALARIES AND WAGES EXPENSE 10 110 , 100 10 12 13 14 15 16 17 18 19 21 4 28 B&B REPAIR SERVICES Trial Balances ust 31, 2019 After Adjustment Before Adjustment Dr 24 31 34 34 36 37 Printed at Cenden County Collesa Date Credit Debit Date Account Titles 2. 631 10 12 13 14 15 16 17 18 19 14 31 18 31 6 22 31 27 28 29 30 31 32 34 34 35 36 38 39 Name Section Date Com B&B REPAIR SERVICES Income Statement 1 Revenues 10 12 13 14 15 16 17 12 Net Loss 14 17 B&B REPAIR SERVICES Retained Earnings Statement For the Month Ended August 31, 2019 Name Section Date Comprehensive Accounting Cycle Review 4-3 Continued B&B Repair Services B&B REPAIR SERVICES Balance Sheet August 31, 2019 10 12 13 14 15 16 17 18 19 14 15 Liabilities and Stockholders' Equity 18 21 21 23 24 24 27 28 29 30 30 Section Comprehensive Accounting Cycle Review 4-3 Continued B&B Date Account Titles Debit Credt 5 3 10 12 13 14 12 31 B&B REPAIR SERVICES Post-Closing Trial Balance August 31, 2019 Debit Credit 1 12 12 14 15 16 17 18 19 14 17 Printed at Canden County Collage