Reference no: EM131823953
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.
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 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.