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P4-7A On November 1, 2017, the following were the account balances of Soho Equipment Repair.
During November, the following summary transactions were completed.
Nov.8Paid $1,220 for salaries due employees, of which $600 is for November and $620 is for October salaries payable.10Received $1,800 cash from customers in payment of account.12Received $3,700 cash for services performed in November.15Purchased store equipment on account $3,600.17Purchased supplies on account $1,300.20Paid creditors $2,500 of accounts payable due.22Paid November rent $480.25Paid salaries $1,000.27Performed services on account worth $900 and billed customers.29Received $750 from customers for services to be performed in the future.Adjustment data:
Instructions
(a) Enter the November 1 balances in the ledger accounts. (Use T‐accounts.)
(b) Journalize the November transactions.
(c) Post to the ledger accounts. Use Service Revenue, Depreciation Expense, Supplies Expense, Salaries and Wages Expense, and Rent Expense.
(d) Prepare the trial balance at November 30.
(e) Journalize and post adjusting entries.
(f) Prepare the adjusted trial balance.
(g) Prepare the income statement and a retained earnings statement for November and a classified balance sheet at November 30.
(f) Cash$3,840Tot. adj. trial balance$24,680(g) Net income$970
PROBLEMS: SET B AND SET C
Visit the book’s companion website, at www.wiley.com/college/kimmel, and choose the Student Companion site to access Problems: Set B and Set C.
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