Reference no: EM132670720
During September the following summary transactions were completed.
Sept. 8 Paid £1,300 for salaries due employees, of which £800 is for September.
9 Shareholders invested £10,000 cash in the business in exchange for ordinary shares.
10 Received £1,000 cash from customers for services billed in August.
12 Received £3,200 cash for services performed in September.
15 Purchased store equipment on account £3,000.
17 Purchased supplies on account £1,100.
20 Paid £4,000 for accounts payable due.
25 Paid salaries £1,150 for September.
27 Performed services on account and billed customers for services provided £1,400.
28 Declared and paid a £600 cash dividend.
29 Received £750 from customers for future service.
30 Paid rent £1500 for 1 September to 30 November.
Adjustment data consist of:
- A count of supplies on September 30, 20X1 indicates that supplies on hand £1,300.
- Accrued salaries payable £600.
- Depreciation is £150 per month.
- Unearned service revenue of £1,700 is earned.
- The prepaid insurance is the cost of a fully paid 6-month insurance policy, effective May 1, 20X1.
- There is only one note payable which is a £10,000 12%, 9-month note dated September 1, 20X1. (Note: 12% is the annual rate)
Problem 1: How to calculate new to accounting, lack of general and basic knowledge