View the step-by-step solution to:

Question

Alou Equipment Repair has a September 30 year end. The company adjusts and closes its accounts on an annual basis.

On August 31, 2021, the account balances of Alou Equipment Repair were as follows:

ALOU EQUIPMENT REPAIR

Trial Balance

August 31, 2021

 

Debit Credit


Cash $2,790


 

Accounts receivable $7,910


 

Supplies $8,500


 

Equipment $9,000


 

Accumulated depreciation—equipment $1,800

 


Accounts payable $3,100

 


Unearned revenue $400

 

J. Alou, capital $21,200

 


J. Alou, drawings $15,600

 

Service revenue $49,600

 

Rent expense $5,500


 

Salaries expense $24,570

 

Telephone expense $2,230


Total $76,100 $76,100





During September, the following transactions were completed:

Sept. 1 Borrowed $10,000 from the bank and signed a two-year, 5% note payable.

2 Paid September rent, $500.

8 Paid employee salaries, $1,050.

12 Received $1,500 cash from customers on account.

15 Received $5,700 cash for services performed in September.

17 Purchased additional supplies on account, $1,300.

20 Paid creditors $2,300 on account.

21 Paid September telephone bill, $200.

22 Paid employee salaries, $1,050.

27 Performed services on account and billed customers for services provided, $900.

29 Received $550 from customers for services to be provided in the future.

30 Paid J. Alou $800 cash for personal use.



Adjustment data consist of the following:

1.Supplies on hand at September 30 cost $1,000.

2.Accrued salaries payable at September 30 total $630.

3.The equipment has an expected useful life of five years.

4.Unearned revenue of $450 is still not earned at September 30.

5.Interest is payable on the first of each month.


Instructions

a.  Prepare T accounts and enter the August 31 balances.

b.  Journalize the September transactions.

c.  Post to T accounts.

d.  Create trial balance at September 30.

e.  Journalize and post adjusting entries.

f.  Create an adjusted trial balance at September 30.

g.  Create an income statement and a statement of owner's equity, and a classified balance sheet.

h.  Create and post closing entries.

i.  make a post-closing trial balance at September 30.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes