Question

Prepare the adjusting entries December 31, 2020. P3.5A (LO 2, 3, 4 an ancial Statement on November 1, 2020, the account balances of Hamm Equipment Repair were as follows. No. No. 101 112 126 153 Cash Accounts Receivable Supplies Equipment Debit $ 2,400 4,250 1.800 12,000 154 201 209 212 301 Credit Accumulated Depreciation Equipment S2,000 Accounts Payable 2.600 Uncamned Service Revenue 1,200 Salaries and Wages Payable 700 Owner's Capital 13,950 $20.450 $20,450 During November, the following summary transactions were completed. Nov. 8 Paid S1,700 for salaries due employees, of which $700 is for October salaries. 10 Received $3,620 cash from customers on account 12 Received $3.100 cash for services performed in November. 15 Purchased equipment on account $2,000. 17 Purchased supplies on account $700. 20 Paid creditors on account $2.700. 22 Paid November rent $400. 25 Paid salaries $1.700. 27 Performed services on account and billed customers for these services $2.200. 29 Received S600 from customers for future service Adjustment data consist of: 1. Supplies on hand $1,400. 2. Accrued salaries payable $350. 3. Depreciation for the month is 5200 4. Services related to uneared service revenue of $1.220 were performed. Instructions a. Enter the November I balances in the ledger accounts b. Journalize the November transactions c. Post to the ledger accounts Usell for the posting reference. Use the following additional accounts: No. 407 Senze Revenue. No. 615 Depreciation Experte. No 631 Supplies Expense. No 726 Salaries and Wages Expense, and No. 729 Rem Expense d. Prepare a trial balance November 30 1. Journalize and post adjusting entries I. Prepare an adjusted trial balance

Answer instructions a-f

Answer 1

Debits Credits General Journal No. Date Account Titles and Explanation b 8-Nov Salaries and wages expense (1700-700) Salaries and wages payable Cash (To record the salaries paid for november and october) 1,000 700 1,700 3,620 10-Nov Cash Accounts receivable (To record the cash received from customer) 3,620 3,100 12-Nov Cash Service revenue (To record the cash recived for services performed) 3,100 2,000 15-Nov Equipment Accounts payable (To record the purchase of equipment on credit) 2,000 700 17-Nov Supplies Accounts payable (To record the supplies purchased on credit) 700 2,700 20-Nov Accounts payable Cash (To record the payment made to creditors) 2,700 400 22-Nov Rent expense Cash (To record the rent paid) 400 1,700 25-Nov Salaries and wages expense Cash (To record the salaries paid) 1,700 2,200 27-Nov Accounts receivable Service revenue (To record the credit sales) 2,200 600 29-Nov Cash Unearned service revenue (To record the revenue received in advance) 600

Posting the entries into the corresponding ledger accounts. CR CR Salaries and wages expense CR Dr Beginning Bal. 27-Nov a &c Dr Beginning Bal. 10-Nov 12-Nov 29-Nov Accounts receivable 4,250 2,200 10-Nov 3,620 Cash 2,400 3,620 3,100 600 Ending Bal. 9,720 8-Nov 20-Nov 22-Nov 25-Nov 1,700 2,700 400 1,700 3,220 9,720 Dr Beginning Bal. 8-Nov 15-Nov 25-Nov 1,000 2,000 1,700 Ending Bal. 4,700 Ending Bal. 6,450 2,830 6,450 4,700 4,700 $ $ $ $ $ $ Rent expense CR Dr CR Dr CR Dr Beginning Bal. 22-Nov Equipment 12,000 Beginning Bal. Beginning Bal. 17-Nov 400 Ending Bal. 400 Supplies 1,800 700 Ending Bal. 2,500 400 2,500 2,500 Ending Bal. 12,000 12,000 $ 12,000 $ $ 400 $ $ $ Dr CR Dr CR Dr Owners' capital Beginning Bal. Accum. Depr-equipment Beginning Bal. 13,950 2,000 20-Nov Accounts payable 2,700 Beginning Bal. 15-Nov 17-Nov 2,600 5,300 CR 2,600 2,000 700 Ending Bal. 13,950 13,950 Ending Bal. 2,000 2,000 Ending Bal. $ 13,950 $ 2,000 $ 5,300 Dr CR Dr Dr CR Unearned revenue Beginning Bal. 29-Nov CR 1,200 600 Salaries and wages payable 700 Beginning Bal. 8-Nov 700 3,100 Service revenue Beginning Bal. 12-Nov 27-Nov 5,300 5,300 2,200 Ending Bal. Ending Bal. 1,800 1,800 Ending Bal. 0 5,300 $ 1,800 700 $ 700 Rest of the T-Accounts are not required to be prepared as there are no adjustments relating to them. The balance of such accounts will remain same as appearing in the undjusted trial balance. Credits d Hamm Equipment Repair Trial Balance As on November 30, 2020 Account Title Cash Accounts receivable Salaries and wages expense Rent expense Supplies Equipment Owners' capital Accum. Depr-equipment Accounts payable Service revenue Unearned revenue $ Debits 3,220 2,830 4,700 400 2,500 12,000 13,950 2,000 2,600 5,300 1,800 25,650 25,650 $ Taking the ending balance from the T-Accounts. As per policy, I can solve first four sub parts of a question.