P3-5C

On November 1, 2014, the account balances of Noreen Equipment Repair were as

follows.

No. Debits No. Credits

101 Cash $ 2,500 158 Accumulated Depreciation

112 Accounts Receivable 4,400 Equipment $ 2,000

126 Supplies 1,600 201 Accounts Payable 3,100

157 Equipment 14,000 209 Unearned Service Revenue 1,700

212 Salaries and Wages Payable 700

311 Common Stock 11,000

320 Retained Earnings 4,000

$22,500 $22,500

During November the following summary transactions were completed.

Nov. 8 Paid $1,600 for salaries due employees, of which $700 is for October salaries.

10 Received $3,240 cash from customers on account.

12 Received $3,600 cash for services performed in November.

15 Purchased equipment on account $2,500.

17 Purchased supplies on account $500.

20 Paid creditors on account $2,900.

22 Paid November rent $800.

25 Paid salaries $1,800.

27 Performed services on account and billed customers for services provided $700.

29 Received $900 from customers for future service.

Adjustment data consist of:

1. Supplies on hand $1,000.

2. Accrued salaries payable $450.

3. Depreciation for the month is $400.

4. Unearned service revenue of $1,500 is earned.

Instructions

(a) Enter the November 1 balances in the ledger accounts.

(b) Journalize the November transactions.

(c) Post to the ledger accounts. Use J1 for the posting reference. Use the following addi-

tional accounts: No. 400 Service Revenue, No. 631 Supplies Expense, No. 711

Depreciation Expense, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.

(d) Prepare a trial balance at November 30.

(e) Journalize and post adjusting entries.

(f) Prepare an adjusted trial balance.

(g) Prepare an income statement and a retained earnings statement for November and a

balance sheet at November 30