Question

In: Accounting

Problem 4-7A: I must 1) Enter the Nov 1 balances into the ledger accounts, 2)Journalize the...

Problem 4-7A: I must 1) Enter the Nov 1 balances into the ledger accounts, 2)Journalize the November transactions, 3)Post above journal entries to the ledger accounts.4) Prepare a trial balance at November 30. 5) journalize the adjusted entires, 6)Post the above adjusting entries. 7) post an adjusted trial balance, 8) post an income statement for nov 30, 9) prepare a retained earnings sheet 10)prepare a classified balance sheet.

For 5) here is the info needed:

1. Supplies on hand are valued at $1,260.
2. Accrued salaries payable are $500.
3. Depreciation for the month is $280.
4. Services were performed to satisfy $500 of unearned service revenue.

Start of question: On November 1, 2017, the following were the account balances of Soho Equipment Repair.

Debit

Credit

Cash

$ 3,630

Accumulated Depreciation—Equipment

$ 500

Accounts Receivable

3,140

Accounts Payable

3,140

Supplies

1,960

Unearned Service Revenue

400

Equipment

10,840

Salaries and Wages Payable

850

Common Stock

10,840

Retained Earnings

3,840

$19,570

$19,570


During November, the following summary transactions were completed.

Nov. 8 Paid $1,220 for salaries due employees, of which $370 is for November and $850 is for October salaries payable.
10 Received $1,840 cash from customers in payment of account.
12 Received $3,740 cash for services performed in November.
15 Purchased store equipment on account $3,600.
17 Purchased supplies on account $1,400.
20 Paid creditors $2,550 of accounts payable due.
22 Paid November rent $480.
25 Paid salaries $1,160.
27 Performed services on account worth $930 and billed customers.
29

Received $830 from customers for services to be performed in the future.

Solutions

Expert Solution

1. Nov 1 balances into the ledger accounts are entered as shown below:

Cash
Particulars Amount Particulars Amount
Beg Balance 3,630
3,630 0
Ending balance 3,630
Account Receivbale
Particulars Amount Particulars Amount
Beg Balance 3,140
3,140
Ending balance 3,140
Supplies
Particulars Amount Particulars Amount
Beg Balance 1,960
1,960 0
Ending balance 1,960
Equipment
Particulars Amount Particulars Amount
Beg Balance 10,840
10,840 0
Ending balance 10,840
Accumulated dep-Equipment
Particulars Amount Particulars Amount
Beg Balance 500
0 500
Ending balance 500
Accounts payable
Particulars Amount Particulars Amount
Beg Balance 3,140
0 3,140
Ending balance 3,140
Unearned Service Revenue
Particulars Amount Particulars Amount
Beg Balance 400
0 400
Ending balance 400
Salaries and Wages payable
Particulars Amount Particulars Amount
Beg Balance 850
0 850
Ending balance 850
Common Stock
Particulars Amount Particulars Amount
Beg Balance 10,840
0 10,840
Ending balance 10,840
Retained earnings
Particulars Amount Particulars Amount
Beg Balance 3,840
0 3,840
Ending balance 3,840

2. November transactions are as journalized below:

Date Particulars L.F Amount ($) Amount ($)
Nov-08 salaries payable 850
Salaries Expense 370
Cash 1220
(for salaries paid)
Nov-10 cash 1,840
Account Receivable 1,840
(For cash received from customers)
Nov-12 cash 3,740
Service Revenue 3,740
(For cash received for services performed)
Nov-15 Store Equipment 3,600
Account Payable 3,600
(For store equipment purchased)
Nov-17 Supplies 1,400
Account Payable 1,400
(for supplies purchased)
Nov-20 Account Payable 2,550
Cash 2,550
(for paid suppliers)
Nov-22 Rent Expense 480
Cash 480
(For rent paid)
Nov-25 Salaries Expense 1,160
cash 1,160
(for salaries paid)
Nov-27 Account Receivable 930
Service Revenue 930
(for customers billed)
Nov-29 Cash 830
Unearned Service Revenue 830
(For cash received for services to be provided in future)

3. Journal entries are posted to the ledger accounts as shown below:

Salaries Expense
Particulars Amount Particulars Amount
Nov-08 370
Nov-25 1,160
1,530 0
Ending balance 1,530
Account Receivbale
Particulars Amount Particulars Amount
Beg Balance 3,140 Nov-10 1,840
Nov-27 930
4,070 1,840
Ending balance 2,230
Supplies
Particulars Amount Particulars Amount
Beg Balance 1,960
Nov-17 1,400
3,360 0
Ending balance 3,360
Equipment
Particulars Amount Particulars Amount
Beg Balance 10,840
Nov-15 3,600
14,440 0
Ending balance 14,440
Accumulated dep-Equipment
Particulars Amount Particulars Amount
Beg Balance 500
0 500
Ending balance 500
Accounts payable
Particulars Amount Particulars Amount
Nov-20 2,550 Beg Balance 3,140
Nov-15 3,600
Nov-17 1,400
2,550 8,140
Ending balance 5,590
Unearned Service Revenue
Particulars Amount Particulars Amount
Beg Balance 400
Nov-29 830
0 1,230
Ending balance 1,230
Salaries and Wages payable
Particulars Amount Particulars Amount
Nov-08 850 Beg Balance 850
850 850
Ending balance 0
Common Stock
Particulars Amount Particulars Amount
Beg Balance 10,840
0 10,840
Ending balance 10,840
Retained earnings
Particulars Amount Particulars Amount
Beg Balance 3,840
0 3,840
Ending balance 3,840
Cash
Particulars Amount Particulars Amount
Beg Balance 3,630 Nov-08 1,220
Nov-10 1,840 Nov-20 2,550
Nov-12 3,740 Nov-22 480
Nov-29 830 Nov-25 1,160
10,040 5,410
Ending balance 4,630
Service Revenue
Particulars Amount Particulars Amount
Nov-12 3,740
Nov-27 930
0 4,670
Ending balance 4,670
Rent Expense
Particulars Amount Particulars Amount
Nov-22 480
480 0
Ending balance 480

4. Trial Balance at November 30 is as prepared below:

Soho Equipment Repair
Trial Balance
As of November 30, 2017
Debit Credit
Cash 4,630
Account Receivable 2,230
Supplies 3,360
Equipment 14,440
Accumulated dep-Equipment 500
Accounts Payable 5,590
Unearned Service Revenue 1,230
Salaries and Wages payable 0
Common Stock 10,840
Retained earnings 3,840
Service Revenue 4,670
Rent Expense 480
Salaries Expense 1,530
Total 26,670 26,670

Related Solutions

Comprehensive Problem 1 Part 2 Post the entries into the following ledger accounts. (Enter the transaction...
Comprehensive Problem 1 Part 2 Post the entries into the following ledger accounts. (Enter the transaction in chronological order for each of the Ledger accounts. Round your final answers to the nearest whole dollar.) A B C D E No Date General Journal Debit Credit 1 1 Dec.1 Cash 270,000 2 Capital stock 270,000 3 4 2 Dec.1 Rental equipment 201,600 5 Cash 138,000 6 Notes payable 63,600 7 8 3 Dec.1 Prepaid rent 9,300 9 Cash 9,300 10 11...
Open the subsidiary ledger accounts and enter the balances for October 1, 2019. Obtain the necessary...
Open the subsidiary ledger accounts and enter the balances for October 1, 2019. Obtain the necessary figures from the schedule of accounts payable and schedule of accounts receivable prepared on September 30, 2019, which appears below. (If you are using the Study Guide & Working Papers, you will find that the subsidiary ledger accounts are already open.) SCHEDULE OF ACCOUNTS PAYABLE September 30, 2019 A FASHION STATEMENT 7,830.00 CLASSY TRENDS 1,700.00 TODAY’S WOMAN 8,770.00 TOTAL $18,300.00 SCHEDULE OF ACCOUNTS RECEIVABLE...
INSTRUCTIONS Open the general ledger accounts and enter the balances for October 1, 2019. Obtain the...
INSTRUCTIONS Open the general ledger accounts and enter the balances for October 1, 2019. Obtain the necessary figures from the postclosing trial balance prepared on September 30, 2019, which is shown below. (If you are using the Study Guide & Working Papers, you will find that the general ledger accounts are already open.) Open the subsidiary ledger accounts and enter the balances for October 1, 2019. Obtain the necessary figures from the schedule of accounts payable and schedule of accounts...
Problem 4-7A (Part Level Submission) On November 1, 2017, the following were the account balances of...
Problem 4-7A (Part Level Submission) On November 1, 2017, the following were the account balances of Soho Equipment Repair. Debit Credit Cash $ 3,120 Accumulated Depreciation—Equipment $ 500 Accounts Receivable 3,010 Accounts Payable 2,630 Supplies 1,450 Unearned Service Revenue 400 Equipment 10,330 Salaries and Wages Payable 720 Common Stock 10,330 Retained Earnings 3,330 $17,910 $17,910 During November, the following summary transactions were completed. Nov. 8 Paid $1,220 for salaries due employees, of which $500 is for November and $720 is...
Uncollectible Accounts—Allowance Method 1. Open the three selected general ledger accounts. 2. Enter the transactions and...
Uncollectible Accounts—Allowance Method 1. Open the three selected general ledger accounts. 2. Enter the transactions and the adjusting and closing entries in a general journal (page 6). After each entry, post only to the three accounts named. If an amount box does not require an entry, leave it blank. 3. Determine the net realizable value as of December 31. Pyle Nurseries used the allowance method to record the following transactions, adjusting entries, and closing entries during the year ended December...
Three of the accounts in the ledger of John Dier indicated the following balances at 1...
Three of the accounts in the ledger of John Dier indicated the following balances at 1 January 2013:  Insurance paid in advance K562  Wages outstanding K306  Rent receivable, received in advance K36 During 2013 John Dier: i. ii. iii. Paid for insurance K1,019 by bank standing order; Paid K15,000 wages in cash Received K2,600 rent by cheque from the tenant At 31 December, insurance prepaid was K345.On the same day receivable in arrears was K105 and wages...
1.On March 31, 2019, the balances of the accounts appearing in the ledger of Racine Furnishings...
1.On March 31, 2019, the balances of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows: Accumulated Depreciation—Building $747,950 Merchandise Inventory $939,850 Administrative Expenses 545,700 Notes Payable 240,200 Building 2,416,650 Office Supplies 20,650 Cash 180,250 Salaries Payable 7,700 Cost of Merchandise Sold 3,965,850 Sales 6,126,850 Interest Expense 9,550 Selling Expenses 717,650 Kathy Melman, Capital 1,545,600 Store Supplies 87,000 Kathy Melman, Drawing 181,750 a. Prepare a multiple-step income statement for the year ended March...
Enter the following balances in a general ledger format as of December 1. 11-cash $161,800. 12-...
Enter the following balances in a general ledger format as of December 1. 11-cash $161,800. 12- Accounts Receivable 12,940. 14- Maintenance Supplies 10,850. 15- Office Supplies 4,900. 16- Office Equipment 28,500. 17- Accum.Depr-Office Equipment 6,900. 18-Vehicles 95,000. 19- Accum.Depr.-Vehicles14,700. 21-Accounts Payable 3,920. 31- S.Holmes Capital 289,250. 32- S.Holmes, Drawing _ 41- Fees Earned _ 51- Drivers Salaries expense_ 52- Maintenance Supplies Exp. _ 53- Fuel Expense_ 53- Office Salaries Expense_ 62- Rent Expense _ 63- Advertising Expense_ 64- Micellaneous Administrative...
The balances of the ledger accounts for a Company on November 30, 2020 are as follows:...
The balances of the ledger accounts for a Company on November 30, 2020 are as follows:      Account Name Balance   Cash $ 21,000   Accounts Receivable 10,200   Supplies 4,000   Prepaid Insurance 10,800   Equipment 12,000   Accumulated Depreciation—Equipment −   Accounts Payable 6,800 Alicia Santiago, Capital 48,000 Alicia Santiago, Drawing 4,600   Fees Income 35,000   Advertising Expense 4,400   Rent Expense 7,200   Salaries Expense 13,200   Supplies Expense −   Insurance Expense −   Utilities Expense 2,400   Depreciation Expense—Equipment −     Adjustment information: (a) The supplies were purchased on...
On January 1, 2020, the general ledger of a Company includes the following account balances: Accounts...
On January 1, 2020, the general ledger of a Company includes the following account balances: Accounts Debit Credit Cash $ 84,000 Accounts Receivable 53,000 Allowance for Uncollectible Accounts $ 5,000 Inventory 44,000 Building 84,000 Accumulated Depreciation 24,000 Land 214,000 Accounts Payable 34,000 Notes Payable (8%, due in 3 years) 48,000 Common Stock 114,000 Retained Earnings 254,000 Totals $ 479,000 $ 479,000 The $44,000 beginning balance of inventory consists of 400 units, each costing $110. During January 2020, the following transactions...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT