Question

Accounting Cycle Review Problem 0-14A On November 1, 2017, the following were the account balances of Soho Equipment Repair. Cash Accounts Receivable Supplies Equipment Debit $ 3,250 3,080 1,580 10,460 Accumulated Depreciation Equipment Accounts Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Credit $ 500 2,760 400 790 10,460 3,460 $18,370 $18,370 During November, the following summary transactions were completed. Nov. 8 Paid $1,220 for salaries due employees, of which $430 is for November and $790 is for October salaries payable. 10 Received $1,900 cash from customers in payment of account. 12 Received $3,800 cash for services performed in November. 15 Purchased store equipment on account $3,530. 17 Purchased supplies on account $1,410. 20 Paid creditors $2,560 of accounts payable due. 22 Paid November rent $500. 25 Paid salaries $1,080. 27 Performed services on account worth $960 and billed customers. 29 Received $830 from customers for services to be performed in the future. Your answer is correct. Policy © 2000-2020 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc.

Answer 1

The given journal entries and T-Accounts are correct but there are few accounts like salaries and wages expenses, common stock etc. are repeated in the Trial Balance which creates confusion. That is the reason even when you total all debit side or credit side, you will not get the correct balance of $26,290. , hence, again the trial balance is prepared along with income statement that has few errors.

SOHO EQUIPMENT REPAIR
Trial Balances
November 30, 2017.
	Debit	Credit
Cash	$4,420
Accounts Receivable	$2,140
Supplies	$1,290
Equipment	$13,990
Accumulated Depreciation		$750
Unearned Service Revenue		$700
Accounts Payable		$5,140
Salaries and Wages Payable		$490
Salaries and Wages Expense	$2,000
Common Stock		$10,460
Retained Earnings		$3,460
Service Revenue		$5,290
Supplies Expense	$1,700
Rent Expense	$500
Depreciation Expense	$250
Totals	$26,290	$26,290
SOHO EQUIPMENT REPAIR
Income Statement
For the Month Ended November 30, 2017
Revenues		$5,290
Less: Expenses:
Salaries and Wages Expenses	($2,000)
Supplies Expense	($1,700)
Rent Expense	($500)
Depreciation Expense	($250)
Total Expenses		($4,450)
Net Income / (Loss)		$840

Please do comment, if you get any confusions, i will explain in detail.