Preparing Financial Statements from Journal Entries
Question Description
No. Debits No. Credits
101 Cash $ 2,790 154 Accumulated Depr.—Equip. $ 500
112 Accounts Receivable 2,510 201 Accounts Payable 2,100
126 Supplies 2,000 209 Unearned Service Revenue 1,400
153 Equipment 10,000 212 Salaries and Wages Payable 500
301 Owner’s Capital 12,800
$17,300 $17,300
During November the following summary transactions were completed.
Nov. 8 Paid $1,100 for salaries due employees, of which $600 is for November Salaries.
10 Received $1,200 cash from customers on account.
12 Received $1,400 cash for services performed in November.
15 Purchased equipment on account $3,000.
17 Purchased supplies on account $500.
20 Paid creditors on account $2,500.
22 Paid November rent $300.
25 Paid salaries $1,300.
27 Performed services on account and billed customers for services provided $900.
29 Received $550 from customers for future service.
Adjustment data consist of:
1. Supplies on hand $1,000.
2. Accrued salaries payable $500.
3. Depreciation for the month is $100.
4. Unearned service revenue of $1,150 is earned.
Instructions
(a) Enter the November 1 balances in the ledger accounts.
(b) Journalize the November transactions.
(c) Post to the ledger accounts. Use J1 for the posting reference. Use the following
accounts: No. 400 Service Revenue, No. 615 Depreciation Expense, No. 631 Supplies
Expense, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.
(d) Prepare a trial balance at November 30.
(e) Journalize and post adjusting entries.
(f) Prepare an adjusted trial balance.
(g) Prepare an income statement and an owner’s equity statement for November and a
balance sheet at November 30.
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