Question

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

Cash $72,790 Accumulated DepreciationEquipment $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 $390 is for November and $830 is for October salaries payable.
10 Received $1,860 cash from customers in payment of account.
12 Received $3,810 cash for services performed in November.
15 Purchased store equipment on account $3,900.
17 Purchased supplies on account $1,360.
20 Paid creditors $2,600 of accounts payable due.
22 Paid November rent $450. 25 Paid salaries $1,080.
27 Performed services on account worth $970 and billed customers.
29 Received $750 from customers for services to be performed in the future.

Required:
a. Journalize the November transactions.
b. Prepare a trial balance at November 30.
c. Journalize and post adjusting entries.
d. Prepare an income statement and a retained earnings statement for November and a classified balance sheet at November 30.

Answer 1

Answer:

a. Journalize the November transactions.

b. Prepare a trial balance at November 30.

c. Journalize and post adjusting entries.

d. Prepare an income statement and a retained earnings statement for November and a classified balance sheet at November 30.

Explanation:

Nov. 8 Paid $1,220 for salaries due employees, of which $390 is for November and $830 is for October salaries payable.  

 

d Salaries and Wages Payable 620  

d Salaries and wage expenses 210  

c Cash                                             830

 

d Salaries and wage expenses 390  

c Cash                                           390

 

10 Received $1,860 cash from customers in payment of account.  

Cash 1860  

Accounts Receivable  1860

 

12 Received $3,810 cash for services performed in November.  

Cash 3810  

Income  3810

 

15 Purchased store equipment on account $3,900.  

Equipment 3900  

Accounts Payable  3900

 

 

17 Purchased supplies on account $1,360.  

Supplies 1360  

Accounts Payable  1360

 

 

20 Paid creditors $2,600 of accounts payable due.  

Accounts Payable 2600  

Cash                            2600

 

 

22 Paid November rent $450. 25 Paid salaries $1,080.  

d Rent expenses 450.25  

d Salaries expenses 1080  

c                       Cash  1530.25

 

 

27 Performed services on account worth $970 and billed customers.  

d Accounts Receivable 970  

c Income                            970

 

 

29 Received $750 from customers for services to be performed in the future.  

Cash 750  

Unearned Service Revenue  750

TRIAL BALANCE

Cash 3,860

Accounts Receivable 2,020

Supplies 2,480

Equipment 13,900

Accumulated Depreciation-Equipment -500

                                                                   21,760

 

Accounts Payable 4,960

Unearned Service Revenue 1,150

Retained Earnings 5,650

Common Stock 10,000

                                  21,760

 

 

Income Statement  

Income 4,780

Rent expenses -450

Salaries and wage expenses -1,680

Retained earnings 2,650