Question

On November 1, 2022, the following were the account balances of Sandhill Equipment Repair. Debit Credit Cash $ 500 $3,540 3.010 Accumulated Depreciation-Equipment Accounts Payable Accounts Receivable 3,050 400 Supplies 1,870 Unearned Service Revenue Equipment 10,750 Salaries and Wages Payable 720 Common Stock 10,750 Retained Earnings 3,750 $19,170 $19,170 During November, the following summary transactions were completed. Nov. 8 Paid $1,220 for salaries due employees, of which $500 is for November and $720 is for October sal 10 Received $1,880 cash from customers in payment of account. 12 Received $3,810 cash for services performed in November. 15 Purchased store equipment on account $3,750. 17 Purchased supplies on account $1,370. 20 Paid creditors $2,570 of accounts payable due 22 Paid November rent $510. 25 Paid salaries $1,080. 27 Performed services on account worth $990 and billed customers. 29 Received $850 from customers for services to be performed in the future. Your answer is partially correct. Enter the November 1 balances in the ledger accounts. Cash 11/30 Bal. 3450 Accounts Receivable 11/30 Bal. 2010 3010 Supplies 11/30 Bal. 1870 1870 Equipment 11/30 Bal. 10750 10750C Accumulated Depreciation-Equipment 0 11/30Bal. D S00 Accounts Payable 11308al. 11/30 Bal | 3050 Unearned Service Revenue 11/30 Bal. 400 Salaries and Wages Payable 11/30 Bal. 11/30 Bal. C 7 20 Common Stock 11/30 Bal. 10750 Retained Earnings

Answer 1

Requirement 1: Enter the beginning balances as follows

Cash $3,540 Accounts Payable $3.050 Nov 1 Nov 1 End. Bal $3.5401 Accounts Receivable $3.010 $3.050 End. Bal Unearned Service Revenue $400 Nov 1 Nov 1 End. Bal $3,010 Supplies $1.870 S400 End. Bal Salaries and Wages Payable $720 Nov 1 Nov 1 End. Bal $1,870 $720 End. Bal Equipment $10.750 Accumulated depreciation - Equipment $500 Nov 1 Nov 1 End. Bal $10.750 $500 End. Bal Common Stock $10,750 Nov 1 $10.750 End. Bal Retained Earnings $3.750 Nov 1 $3.750 End. Bal

Requirement 2: Prepare the journal entries including adjusting entries as follows

Credit Date Nov. 8 Account Title and Explanation Salaries and Wages Expense Salaries and Wages Payable Cash To record salaries and wages paid Debit $500 $720 $1,220 $1,880 Nov. 10 Cash Accounts Receivable To record cash received on account $1,880 $3.810 Nov. 12 Cash Service Revenue To record service revenue earned $3.810 $3,750 Nov. 15 Equipment Accounts Payable To record store equipment purchased on account $3,750 $1,370 Nov. 17 Supplies Accounts Payable To record supplies purchased on account $1.370 $2,570 Nov. 20 Accounts Payable Cash To record cash paid on account $2,570 S510 Nov. 22 Rent Expense Cash To record rent paid $1,080 Nov. 25 Salaries and Wages Expense Cash To record salaries and wages paid $1,080 $990 Nov. 27 Accounts Receivable Service Revenue To record service revenue earned $990 $850 $850 Nov. 29 Cash Unearned Service Revenue To record service revenue collected in advance Adjusting Journal Entries Adj. Account Title and Explanation 1 Supplies Expense ($1,870+ $1,370 - $1,260) Supplies To record adjustment for supplies used Credit Debit $1,980 $1,980 90 Salaries and Wages Expense Salaries and Wages Payable To record adjustment for accrued salaries $490 3 $290 Depreciation Expense Accumulated Depreciation - Equipment To record adjustment for depreciation expense Unearned Service Revenue Service Revenue To record service revenue earned $520

Requirement 3: Post the above journal entries to T-Accounts as follows

Nov 20 Nov 1 Nov 10 Nov 12 Nov 29 End. Bal Nov 8 Nov 20 Nov 22 Nov 25 Accounts Payable $2,570 $3.050 $3,750 $1,370 Nov 1 Nov 15 Nov 17 Cash $3.540 $1,220 $1.880 $2,570 $3.810 $510 $850 $1,080 $4,700 Accounts Receivable $3,010 $1.880 $990 $2,120 Supplies $1,870 $1,980 $1,370 $1.260 Nov 10 Nov 1 Nov 27 End. Bal $5.600 End. Bal Unearned Service Revenue Adj. 4 $520 $400 Nov 1 $850 Nov 29 $730 End. Bal Salaries and Wages Payable Nov 8 $720 $720 Nov 1 $490 Adj. 2 $490 End. Bal Adj. 1 Nov 1 Nov 15 End. Bal Nov 1 Nov 15 End. Bal Equipment $10,750 $3,750 $14,500 Accumulated depreciation - Equipment $500 Nov 1 $290 Adj. 3 $790 End. Bal Common Stock $10.750 Nov 1 Salaries and Wages Expense Nov 8 $500 Nov 25 $1,080 Adj. 2 $490 End. Bal $2,070 $10.750 End. Bal Rent Expense $510 Retained Earnings $3.750 Nov 1 Nov 22 End. Bal $510 $3,750 End. Bal Adj. 1 Supplies Expense $1,980 $1.980 End. Bal Service Revenue $3.810 $990 $520 Nov 12 Nov 27 Adj. 4 Adj. 3 End. Bal Depreciation Expense $290 $290 $5,320 End. Bal

Requirement 4: Prepare the following trial balance and financial statements

SER Inc
Adjusted Trial Balance
November 30, 2022
Account Title	Debit	Credit
Cash	$4,700
Accounts Receivable	$2,120
Supplies	$1,260
Equipment	$14,500
Accumulated Depreciation - Equipment		$790
Unearned Revenue		$730
Accounts Payable		$5,600
Salaries and Wages Payable		$490
Common stock		$10,750
Retained Earnings		$3,750
Service revenue		$5,320
Salaries and Wages Expense	$2,070
Supplies Expense	$1,980
Rent Expense	$510
Depreciation Expense	$290
Total	$27,430	$27,430
SER Inc
Income Statement
For the Month Ended November 30, 2022
Particulars	Amount	Amount
Revenues:
Service revenue		$5,320
Expenses:
Salaries and Wages Expense	$2,070
Supplies Expense	$1,980
Rent Expense	$510
Depreciation Expense	$290
Total Expenses		$4,850
Net income		$470
SER Inc
Retained Earnings Statement
For the Month Ended November 30, 2022
Particulars		Amount
Retained Earnings - November 1		$3,750
Add: Net income		$470
Retained Earnings - November 30		$4,220
SER Inc
Balance Sheet
30-Nov-22
Assets	Amount	Amount
Current Assets
Cash	$4,700
Accounts Receivable	$2,120
Supplies	$1,260
Total Current Assets		$8,080
Property, Plant and Equipment
Equipment	$14,500
Deduct: Accumulated Depreciation - Equipment	($790)	$13,710
Total Assets		$21,790
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable	$5,600
Unearned Revenue	$730
Salaries and Wages Payable	$490
Total Current Liabilities		$6,820
Stockholders' Equity
Common stock	$10,750
Retained Earnings	$4,220
Total stockholders' equity		$14,970
Total liabilities and stockholders' equity		$21,790