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Journalize, post and prepare trial balance, income statement

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See attached file for the table.

On September 1, 2008, the account balances of Rand Equipment Repair, Inc. were as follows.
No. Debits No. Credits
101 Cash $4,880 154 Accumulated Depreciation $1,500
112 Accounts Receivable 3,520 201 Accounts Payable 3,400
126 Supplies 2,000 209 Unearned Service Revenue 1,400
153 Store Equipment 15,000 212 Salaries Payable 500
311 Common Stock 15,000
320 Retained Earnings 3,600
$25,400 $25,400

During September the following summary transactions were completed.
Sept. 8 Paid $1,400 for salaries due employees, of which $900 is for September.
10 Received $1,200 cash from customers on account.
12 Received $3,400 cash for services performed in September.
15 Purchased store equipment on account $3,000.
17 Purchased supplies on account $1,200.
20 Paid creditors $4,500 on account.
22 Paid September rent $500.
25 Paid salaries $1,250.
27 Performed services on account and billed customers for services provided $1,500.
29 Received $650 from customers for future service.

Adjustment data consist of:
1. Supplies on hand $1,200.
2. Accrued salaries payable $400.
3. Depreciation is $100 per month.
4. Unearned service revenue of $1,450 is earned.

Instructions
(a) Journalize the September transactions. Post to ledge accounts.
(b) Prepare a trial balance at September 30.
(c) Journalize and post adjusting entries.
(d) Prepare an adjusted trial balance.
(e) Prepare an income statement and a retained earnings statement for September and a balance sheet at September 30.

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Journalize adjustments, post, trial balance, income statement

The trial balance of Save-More Wholesale Company contained the accounts shown at December 31, the end of the company's fiscal year.
SAVE-MORE WHOLESALE COMPANY
10-Column Worksheet
December 31, 2007
Unadjusted Trial Balance Adjustment Adjusted Trial Balance Income Statement Balance Sheet
Cash $33,400
Accounts Receivable 37,600
Merchandise Inventory 70,000
Land 92,000
Buildings 200,000
Accum Deprec - Buildings $60,000
Equipment 83,500
Accum Deprec - Equipment 40,500
Notes Payable 54,700
Accounts Payable 37,500
Common Stock 160,000
Retained Earnings 68,200
Dividends 10,000
Sales 922,100
Sales Discounts 5,000
Cost of Goods Sold 709,900
Salaries Expense 71,300
Utilities Expense 9,400
Repair Expense 8,900
Gas and Oil Expense 7,200
Insurance Expense 4,800
$1,343,000 $1,343,000
Account title
Account title
Account title
Account title

Adjustment data:
1. Depreciation is $10,000 on buildings and $9,000 on equipment. (Both are administrative expenses.)
2. Interest of $5,500 is due and unpaid on notes payable at December 31.
Other data: $15,000 of the notes payable are payable next year.

Instructions
(a) Journalize the adjusting entries.

1A 31/12/2007 Account title Amount
Account title Amount

1B 31/12/2007 Account title Amount
Account title Amount

2 31/12/2007 Account title Amount
Account title Amount

(b) Create T accounts for all accounts used in part (a). Enter the trial balance amounts into the T accounts and post the adjusting entries.

Account Title Account Title
12/31/07 Amount 12/31/07 Amount
12/31/07 Amount
12/31/07 Formula

Account Title Account Title
12/31/07 Amount 12/31/07 Amount
01/00/00 Amount
01/00/00 Formula

Account Title Account Title
12/31/07 Amount 12/31/07 Amount

(c) Prepare an adjusted trial balance.

(d) Prepare a multiple-step income statement and a retained earnings statement for the year, and a classified balance sheet at December 31, 2007.

SAVE-MORE WHOLESALE COMPANY SAVE-MORE WHOLESALE COMPANY
Income Statement Balance Sheet
For the Year Ended December 31, 2007 December 31, 2007
Account title Amount Title
Account title Amount Account title $0
Title Formula Account title 0
Account title Amount Account title 0
Title Formula Title 0
Title Title
Account title Amount Account title 0
Account title Amount Account title $0
Account title Amount Account title 0 0
Account title Amount Account title 0
Account title Amount Account title 0 0
Account title Amount Title 0
Account title Amount Title $0
Title Formula
Title Formula Title
Title Title
Account title Amount Title
Title Formula Account title Amount
Account title Amount
SAVE-MORE WHOLESALE COMPANY Account title Amount
Statement of Retained Earnings Title Formula
For the Year Ended December 31, 2007 Title
Title Amount Account title Amount
Title Amount Total liabilities Formula
Formula Title
Title Amount Account title Amount
Title Formula Account title Amount
Title Formula
Title Formula

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