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P3-5A Rand Equipment Repair

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P3-5A On September 1, 2008, the account balances of Rand Equipment Repair, Inc. were as follows.

During September the following summary transactions were completed.


8 Paid $1,400 for salaries due employees, of which $900 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 $1,250.

27 Performed services on account and billed customers for services provided $1,500.

29 Received $650 from customers for future service.

Adjustment data consist of:
1. Supplies on hand $1,200.
2. Accrued salaries payable $400.
3. Depreciation is $100 per month.
4. Unearned service revenue of $1,450 is earned.

(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 accounts: No. 407 Service Revenue, No. 615 Depreciation Expense, No. 631 Supplies Expense, No. 726 Salaries 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 balance sheet at September 30.

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