Journalize transactions

$3.00

P4-7A  

Journalize transactions and follow through accounting cycle to preparation of financial statements.

(LO 4, 5, 6), AP

On November 1, 2014, the following were the account balances of Rijo Equipment Repair.

Debit Credit
Cash $?2,790 Accumulated DepreciationEquipment $???500
Accounts Receivable 2,910 Accounts Payable 2,300
Supplies 1,120 Unearned Service Revenue 400
Equipment 10,000 Salaries and Wages Payable 620
Common Stock 10,000
Retained Earnings 3,000
$16,820 $16,820

During November, the following summary transactions were completed.

Nov. ?8 Paid $1,220 for salaries due employees, of which $600 is for November and $620 is for October salaries payable.
10 Received $1,800 cash from customers in payment of account.
12 Received $3,700 cash for services performed in November.
15 Purchased store equipment on account $3,600.
17 Purchased supplies on account $1,300.
20 Paid creditors $2,500 of accounts payable due.
22 Paid November rent $480.
25 Paid salaries $1,000.
27 Performed services on account worth $900 and billed customers.
29 Received $750 from customers for services to be provided in the future.

Adjustment data:

1. Supplies on hand are valued at $1,100.
2. Accrued salaries payable are $480.
3. Depreciation for the month is $250.
4. Services were performed to satisfy $500 of unearned service revenue.

Instructions

1. Enter the November 1 balances in the ledger accounts. (Use T-accounts.)
2. Journalize the November transactions.
3. Post to the ledger accounts. Use Service Revenue, Depreciation Expense, Supplies Expense, Salaries and Wages Expense, and Rent Expense.
4. Prepare a trial balance at November 30.
5. Journalize and post adjusting entries.
6. Prepare an adjusted trial balance.

(f) Cash $3,840
Tot. adj. trial balance $24,680
7. Prepare an income statement and a retained earnings statement for November and a classified balance sheet at November 30.

(g) Net income $970
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