On November 1, 2014, the account balances of Samone Equipment Repair, Inc. were as follows:-
No.
|
|
Debit (in birr)
|
No,
|
|
Credit (in birr)
|
101
|
Cash
|
4,880
|
158
|
Accumulated Depreciation—Equipment
|
2,100
|
112
|
Accounts Receivable
|
3,520
|
201
|
Accounts Payable
|
3,400
|
126
|
Supplies
|
2,000
|
209
|
Unearned Service Revenue
|
1,400
|
157
|
Equipment
|
18,000
|
212
|
Salaries and Wages Payable
|
500
|
|
|
|
311
|
Share Capital—Ordinary
|
10,000
|
|
|
|
320
|
Retained Earnings
|
11,000
|
|
Total
|
28,400
|
|
Total
|
28,400
|
During September, the following summary transactions were completed.
Sept. 8 Paid £1,700 for salaries due employees, of which £1,200 is for September.
10 Received £1,200 cash from customers on account.
12 Received £3,400 cash for services performed in September.
15 Purchased store equipment on account £3,000.
17 Purchased supplies on account £1,200. 20 Paid creditors £4,500 on account.
22 Paid September rent £500.
25 Paid salaries £1,050.
27 Performed services on account and billed customers for services provided £1,600.
29 Received £750 from customers for future service.
Instructions
(a) Enter the September 1 balances in the ledger accounts.
(b) Journalize the September transactions.
(c) Post to the ledger accounts. Use J1 for the posting reference. Use the following additional accounts: No. 400 Service Revenue, No. 631 Supplies Expense, No. 711 Depreciation Expense, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.
(d) Prepare a trial balance at September 30.
(e) Journalize and post adjusting entries.
(f) Prepare an adjusted trial balance.
(g) Prepare an income statement and a retained earnings statement for September and a statement of financial position at September 30.