Problem:
On November 1, 2007, the following were the account balances of Coleman equipment Repair.
Debits Credits
Cash $2,790 Accumulated Depreciation $ 500
Accounts receivable 2,910 Accounts Payable 2,300
Supplies 1,120 Unearned Service Revenue 400
Store Equipment 10,000 Salaries Payable 620
$16,820 Common Stock 10,000
Retained earnings 3,000
$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.
Nov.10 Received $1,200 cash from customers in payment of account.
Nov.12 Received $1,700 cash fro services performed in November.
Nov.15 Purchased store equipment on account $3,000.
Nov.17 Purchased supplies on account $1,300
Nov.20 Paid creditors $2,500 of accounts payable due.
Nov.22 Paid November rent $450.
Nov.25 Paid salaries $1,000
Nov.27 Performed services on account and billed customers for services provided $900.
Nov.29Received $550 from customers for services to be provided in the future.
Adjustment data:
1. Supplies on hand are valued at $1,600
2. Accrued salaries payable are $480
3. Depreciation for the month is $250
4. Unearned service revenue of $300 is earned
Instructions:
a.) Enter the November 1 balances in the ledger accounts. (Use T accounts)
b.) Journalize the November transactions.
c.) Post to ledger accounts. Use Service Revenue, Depreciation Expense, Supplies Expense, Salaries expense, and Rent Expense.
d.) Prepare a trial balance at November 30.
e.) Journalize and post adjusting entries.
f.) Prepare an adjusted trial balance.
g.) Prepare an income statement and a retained earnings statement for November and a classified balance sheet at November 30.
On November 1, 2007, the following were the account balances of Coleman equipment Repair.