accounting (balance sheet, retained earnings...)

Problem P3-5A
On September 1, 2002, the account balances of Rijo Equipment Repair Corp. were as follows:
Nbr: Debits Nbr: Credits
101 Cash $4,880 154 Accumulated depreciation $1,500
112 Accounts receivable 3,520 201 Accounts payable 3,400
126 Supplies 2,000 209 Unearned service revenue 1,400
153 Store equipment 15,000 212 Salaries payable 500
311 Common stock 10,000
320 Retained earnings 8,600
$25,400 $25,400

During September the following summary transactions were completed:
Sep 8 Paid salaries due employees, of which a portion was for September. $1,100 Total paid
600 September amount
Sep 10 Received cash from customers on account. 1,200
Sep 12 Received cash for services performed in September. 3,400
Sep 15 Purchased store equipment on account. 3,000
Sep 17 Purchased supplies on account. 1,500
Sep 20 Paid creditors on account. 4,500
Sep 22 Paid September rent. 500
Sep 25 Paid salaries. 1,050
Sep 27 Performed services on account and billed customers for services rendered. 700
Sep 29 Received cash from customers for future services. 650

Adjustment data consists of:
1 Supplies on hand at the end of the month: $1,700
2 Accrued salaries payable: 400
3 Depreciation rate per month: 200
4 Unearned services revenue which was earned during the month: 1,450

Instructions:
(a) Enter the September 1 balances in the ledger accounts. The ledger is found after the journal in instruction (e).

(b) Journalize the September transactions. The journal is found after instruction (e). Utilize J1 as a reference. J1

(c) Post to the ledger accounts. Use J1 for the posting reference. Use the following accounts:

407 Service revenue 726 Salaries expense
615 Depreciation expense 729 Rent expense
631 Supplies expense

(d) Prepare a trial balance at September 30. (This form will be utilized for instruction (f) as well.) (e) Journalize and post the adjusting entries. Continue these following your last journal entry required by instruction (b).
(f) Prepare an adjusted trial balance. Use the next columns in the trial balance created in instruction (d), above.

(g) (1) Prepare an income statement for September.
(g) (2) Prepare a retained earnings statement for September.
(g) (3) Prepare a balance sheet for September 30, 2002.

  1. 👍 0
  2. 👎 0
  3. 👁 783
  1. Thanks

    1. 👍 0
    2. 👎 0
  2. On August 1, 2018, the account balances of Rand Equipment Repair were as follows: No. Debits No. Credits Accumulated Depreciation Accounts Payable 101 Cash $4,880 154 $1,500 112 Accounts Receivable 3,520 201 3,400 126 Supplies 2,000 209 Unearned Service Revenue 1,400 Salaries Payable J. Rand, Capital 153 Store Equipment 15,000 212 500 301 18,600 $25,400 $25.400 During August the following summary transactions were completed. Aug. 2 Rand Equipment Repair added capital introduce $10,000 in business. 8 Paid $1,400 for salaries due employees for July, of which $900 is for August. 10 Received $1,200 cash from customers on account. 12 Received $3,400 cash for services performed in August. 15 Purchased store equipment on account $3,000. 17 Purchased supplies on account $1,200. 20 Paid creditors $4,500 on account. 22 Paid August rent $500. 25 Paid salaries $1,250. 27 Performed services on account and billed customers for services provided S1,500. 29 Received $650 from customers for future service (Unearned Service Revenue). On 31 August the business made the following transactions: 1. Supplies used for company is $2,000. 2. Accrued salaries payable $400. 3. Depreciation is $100 per month. 4. Unearned service revenue of $1,450 is earned. 5. Owner drawing $500 for personal use. You use the following additional accounts: No. 407 Service Revenue, No. 615 Depreciation Expense, No. 631 Supplies Expense, No. 726 Salaries Expense, and No. 729 Rent Expense, No.302 J. Rand, Drawing, No.303 Income Summary Required (1) Analyze to all transactions in this company from 2 August to 29 August. (2) Journalize the August transactions. (3) Post to the ledger accounts (Use T-account). (4) Prepare a trial balance at August 30. (5) Journalize and post adjusting entries. (6) Prepare an adjusted trial balance. (7) Prepare a Profit or loss Statement and a Change Owner's Equity Statement for August and a Statement of Financial Position at August 31. Prepare closing entry for August, 2018. Prepare post-closing trial balance at 31 August, 2018.

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. Accounting - Please check me

    Indicate whether a debit or credit decreases the normal balance of each of the following accounts. Office Supplies- debit Repair Service Revenue- debit Interest Payable- debit Accounts Receivable- creditSalaries Expense- debit

  2. Algebra

    An emergency plumber chargers $65 as a call-out fee plus an additional $75 per hour. He arrives at a house at 9:30 and works to repair a water tank. If the total repair bill is $196.25, at what time was the repair completed? In

  3. Accounting

    E3-5 Drew Carey Company has the following balances in selected accounts on December 31,2008. Accounts Receivable $ -0- Accumulated Depreciation—Equipment -0- Equipment 7,000 Interest Payable -0- Notes Payable 10,000 Prepaid

  4. FINANCE

    Below is a list of account balances for Currie Hospital as of December 31, 2013. Prepare a balance sheet as of December 31, 2013, in proper form. (Hint: You will need to compute the net assets account. Assume that all net assets

  1. Physics

    Problem 2- 1. As a ship is approaching the dock at 45 cm/s, an important piece of landing equipment needs to be thrown to it before it can dock. This equipment is thrown at 15.0 m/s at 60∘ above the horizontal from the top of a

  2. U.S. and Global economics; involving math problems

    I've been working on this problem for "hours" and I can't quite figure out how to solve it; can anyone help plzzz? I would appreciate it. :) Two college students went on spring break to Guadalajara, Mexico. One took the vacation

  3. Operations management

    An appliance manufacturer wants to contract with a repair shop to handle authorized repairs. The company has an acceptable range of repair time from 50 minutes to 90 minutes. Two firms have submitted bids for the work. In the

  4. accounting

    Jack Shellenkamp owns and manages a computer repair service, which had the following trial balance on December 31, 2011 (the end of its fiscal year). BYTE REPAIR SERVICE Trial Balance December 31, 2010 Cash $8,000 Accounts

  1. math

    Ben deposits $400 into an account that earns 5% interest compounded annually. Sam deposits the same amount into an account that earns 5% simple interest. Compare the account balances after 2 years.

  2. mathematics of investment

    A note for 9,000 dated August 12, 2002, is due on October 20, 2002 with simple interest at 9%. If the note is discounted on August 20, 2002 at 13%, how much the proceeds be?

  3. Math

    The value of an index-linked pension is updated each September using the RPI. In September 2007 the pension paid £265. Calculate the value of the pension in September 2008. The value of the RPI was 208.0 in September 2007 and

  4. Algebra 1

    A college student is looking at her monthly checking account records. On September 1, 2008, her checking account held a balance of $1,050. At the end of March 2009, her checking account held a balance of $800. What is the monthly

You can view more similar questions or ask a new question.