In: Accounting
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. |
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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 $830 from customers for services to be performed in the future. |
1. Nov 1 balances into the ledger accounts are entered as shown below:
Cash | |||
Particulars | Amount | Particulars | Amount |
Beg Balance | 3,630 | ||
3,630 | 0 | ||
Ending balance | 3,630 | ||
Account Receivbale | |||
Particulars | Amount | Particulars | Amount |
Beg Balance | 3,140 | ||
3,140 | |||
Ending balance | 3,140 | ||
Supplies | |||
Particulars | Amount | Particulars | Amount |
Beg Balance | 1,960 | ||
1,960 | 0 | ||
Ending balance | 1,960 | ||
Equipment | |||
Particulars | Amount | Particulars | Amount |
Beg Balance | 10,840 | ||
10,840 | 0 | ||
Ending balance | 10,840 | ||
Accumulated dep-Equipment | |||
Particulars | Amount | Particulars | Amount |
Beg Balance | 500 | ||
0 | 500 | ||
Ending balance | 500 | ||
Accounts payable | |||
Particulars | Amount | Particulars | Amount |
Beg Balance | 3,140 | ||
0 | 3,140 | ||
Ending balance | 3,140 | ||
Unearned Service Revenue | |||
Particulars | Amount | Particulars | Amount |
Beg Balance | 400 | ||
0 | 400 | ||
Ending balance | 400 | ||
Salaries and Wages payable | |||
Particulars | Amount | Particulars | Amount |
Beg Balance | 850 | ||
0 | 850 | ||
Ending balance | 850 | ||
Common Stock | |||
Particulars | Amount | Particulars | Amount |
Beg Balance | 10,840 | ||
0 | 10,840 | ||
Ending balance | 10,840 | ||
Retained earnings | |||
Particulars | Amount | Particulars | Amount |
Beg Balance | 3,840 | ||
0 | 3,840 | ||
Ending balance | 3,840 |
2. November transactions are as journalized below:
Date | Particulars | L.F | Amount ($) | 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 |