Prepare an income statement and a retained earnings


Question - On November 1, 2017, the following were the account balances of Soho Equipment Repair.

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.12Received $3,700 cash for services performed in November.15Purchased store equipment on account $3,600.17 Purchased supplies on account $1,300.20Paid creditors $2,500 of accounts payable due. 22 Paid November rent $480.25Paid salaries $1,000.27Performed services on account worth $900 and billed customers.29Received $750 from customers for services to be performed 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

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

(b) Journalize the November transactions.

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

(f) Cash$3,840Tot. adj. trial balance$24,680(g) Net income$970

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Accounting Basics: Prepare an income statement and a retained earnings
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