Question
This corporation sells office products and performs accounting services. S & B uses the Perpetual Inventory system and had the following balances: S & B
This corporation sells office products and performs accounting services.
S & B uses the Perpetual Inventory system and had the following balances:
S & B Office Supplies and Services
Trial Balance
August 1, 2018
| Title | Debit | Credit |
| Cash | 9,000 |
|
| Accounts Receivable | 2,240 |
|
| Supplies | 860 |
|
| Equipment | 25,000 |
|
| Accumulated Depreciation |
| 1,000 |
| Accounts Payable |
| 3,400 |
| Unearned Service Revenue |
| 4,000 |
| Salaries and Wages Payable |
| 1,700 |
| Common Stock |
| 20,000 |
| Retained Earnings |
| 7,000 |
| Totals | $37,100 | $37,100 |
|
During the month of August, the following summary transactions were completed.
Aug. 8 Paid $3,550 for salaries due employees, of which 1,850 is for August and $1,700 is for July. 10 Received $1,900 cash from customers in payment of account. 11 Purchased merchandise on account from dds Discount Supply $8,000, terms 2/10, n/30. 12 Sold merchandise on account for $5,500, terms 2/10, n/30. The cost of the merchandise sold was $4,000. 15 Received credit from dds Discount Supply for merchandise returned $300. 19 Received collections in full, less discounts, from customers billed on sales of $5,500 on August 12. 20 Paid dds Discount Supply in full, less discount. 22 Received $2,300 Cash for services performed in August. 25 Purchased equipment on account $5,000. 27 Purchased supplies on account $1,700. 28 Paid creditors $3,000 of accounts payable due. 30 Paid August rent $375. 30 Paid Salaries $1,300. 30 Performed services on account and billed customers $700. 30 Received $675 from customers for services to be performed in the future.
Adjustment Data: Supplies on hand are valued at $1,600. Accrued salaries are $500. Depreciation for the month is $250. $750 of services related to the unearned service revenue has not been earned by month end.
Instructions: Enter the August 1, balances in ledger accounts. Journalize the August transactions. Post to the ledger accounts. HINT: You will need to add some accounts to the beginning ones available. Journalize and Post the Adjusting Entries. Prepare an adjusted trial balance at August 31, 2018. Journalize the Closing Entries. | ||
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