QUESTION B-F

QUESTION B-F

Q1 On November 1, 2020, the account balances of Pine Equipment Repair were as follows: Cash Accounts Receivable Supplies Equipment Debits $ 2,790 2,510 2,000 10,000 Accumulated Depreciation Accounts Payable Unearned Service Revenue Salaries and Wages Payable Owner's Capital Credits $ 500 2,100 1,400 500 12,800 17,300 17,300 In addition to the accounts listed above, the chart of accounts includes these accounts: Service Revenue, Depreciation Expense, Supplies Expense, Salaries and Wages Expense, and Rent Expense. During November, the following transactions were completed: Date Transactions Nov. 8 Paid $1,100 for salaries due employees, of which $600 is for November salaries. 10 Received $1,200 cash from customers on account. 12 Received $1,400 cash for services performed in November. 15 Purchased equipment on account $3,000. 17 Purchased supplies on account $500. 20 Paid creditors on account $2,500. 22 Paid November rent $300. 25 Paid salaries $1,300. 27 Performed services on account and billed customers for services provided $900. 29 Received $550 from customers for future service. In addition, adjustments for the month ended 30 November 2020 are as follows: i) Supplies on hand $1,000. ii) Accrued salaries payable $500. iii) Depreciation for the month is $100. iv) Unearned service revenue of $1,150 is earned. Date cr. Particulars 8 Salaries account payable ac dr. Salaries and wages ac dr. To cash ac dr. 500 600 1100 1200 10 Cash ac dr. To account receivables 1200 1400 12 Cash ac dr To service revenue 1400 3000 15 Equipmemt ac dr. To account payable ac 3000 500 17 Supplies ac dr. To account payables ac 500 2500 20 Account payable ac dr. To cash 2500 300 22 Rent expense ac dr. To cash 300 1300 25 Salaries and wages expense ac dr. To cash 1300 900 27 Account receivable ac dr. To service revenue ac 900 550 29 Cash ac dr. To unearned revenue ac 550 b) Post the journals to the ledger accounts and calculate the balance carried forward to December. (26% marks) c) On an extended worksheet, prepare the Trial Balance for Pine Equipment Repair as at 30 November 2020. (7% marks) d) Journalise the November adjustments. Narrations are required. (6 marks) e) Enter the November adjustments on the extended worksheet to prepare the Adjusted Trial Balance as at 30 November 2020. (9% marks) f) On the basis of the Adjusted Trial Balance, present the following financial statements for Pine Equipment Repairs: i) Income Statement for the year ended 30 November 2020. ii) Owner's Equity Statement for the year ended 30 November 2020. iii) Balance Sheet as at 30 November 2020