Question No. 1

On November 1, 2020, the account balances of Shaheen Repairs Inc. were as follows.

Debits Credits

Cash $ 2,400 Accumulated DepreciationEquipment $ 2,000

Accounts Receivable 4,450 Accounts Payable 2,600

Supplies 1,800 Unearned Service Revenue 1,360

Equipment 16,000 Salaries and Wages Payable 700

Common Stock 10,000

Retained Earnings 7,990

$24,650 $24,650

During November, the following summary transactions were completed.

Nov. 8 Paid $1,500 for salaries due employees, of which $700 is for October salaries.

10 Received $3,420 cash from customers on account.

12 Received $3,100 cash for services performed in November.

15 Purchased equipment on account $2,000.

17 Purchased supplies on account $700.

20 Paid creditors on account $2,700.

22 Paid November rent $500.

25 Paid salaries $1,500.

27 Performed services on account and billed customers for services provided $1,900.

29 Received $350 from customers for future service.

Adjustment data consist of:

1. Supplies on hand $1,400.

2. Accrued salaries payable $350.

3. Depreciation for the month is $200.

4. Unearned service revenue of $1,380 is recognized for services performed.

Instructions

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

(b) Journalize the November transactions.

(c) Post to the ledger accounts. Use the following additional accounts: Service Revenue, Supplies Expense, Depreciation Expense, Salaries and Wages Expense, and Rent Expense.

(d) Prepare a trial balance at November 30.