Given As on ID No.
101 Cash $ 2,400 $ 2,001
112 Accounts Receivable $ 4,250 $ 4,001
126 Supplies $ 1,800 $ 1,001
153 Equipment $ 12,000 $ 12,001
$ 20,450 $ 19,004
154 Accumulated Depreciation-Equipment $ 2,000 $ 2,001
201 Accounts Payable $ 2,600 $ 2,001
209 Unearned Service Revenue $ 1,200 $ 1,001
212 Salaries and Wages Payble $ 700 $ 1
301 Owner's Capital $ 13,950 $ 13,001
$ 20,450 $ 18,005
During November, the following summary transectons were completed.
Paid $ 1,700
Nov.08
for salaries due employees, of which $ 001 is for October salaries
Nov.10Received $ 3,620 cash from customers on account.
Nov.12
Received $ 3,100 cash for services performed in November
Nov.15 Puchased equipment on account $2,000
Nov.17 Purchased supplies on account $700
Nov.20 Paid creditors on account $ 2,700
Nov.22 Paid November rent $ 400
Nov.25 Paid salaries $ 1,700
Performed
Nov.27
services on account and billed customers for these services $ 2,200
Nov.29Received $ 600 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 $ 200
4) Services related to unearned service revenue of $ 1,220 were performed
Instructions:
a. Enter the November 1 balances in the ledger accounts.
b. Journalize the November transactions.
c. Post to the ledger accounts. Use J1 for the posting reference. Use the following additional
accounts:No. 407 Service Revenue, No. 615 Depreciation Expense, No. 631 Supplies Expense, No.
726 Salariesand Wages Expense, and No. 729 Rent Expense.
d. Prepare a trial balance at November 30.
e. Journalize and post adjusting entries.
f. Prepare an adjusted trial balance.
g. Prepare an income statement and an owner’s equity statement for November and a balance
sheet at November 30.
b) Journal Entries:
Date Particulars Dr. Cr.
Nov.-8 Salaries and Wages Payable $ 1
Salaries and Wages Expense $ 1,699
Cash $ 1,700
Nov.-10 Cash $ 3,620
Accounts Receivable $ 3,620
Nov.-12 Cash $ 3,100
Service Revenue $ 3,100
Nov.-15 Equipment $ 2,000
Accounts Payable $ 2,000
Nov.-17 Supplies $ 700
Accounts Payable $ 700
Nov.-20 Accounts Payable $ 2,700
Cash $ 2,700
Nov.-22 Rent Expense $ 400
Cash $ 400
Nov.-25 Salaries and Wages Expense $ 1,700
Cash $ 1,700
Nov.-27 Accounts Receivable $ 2,200
Service Revenue $ 2,200
Nov.-29 Cash $ 600
Unearned Service Revenue $ 600
Adjusting Entries:
Date Particulars Dr. Cr.
Nov. 30 Supplies Expense $ 605
supplies $ 605
Nov. 30 Salaries and Wages Expense $ 350
Salaries and Wages Payable $ 350
Nov. 30 Depriciation Expense $ 200
Accumulated Depreciation $ 200
Nov. 30 Unearned Service Revenue $ 1,220
Service Revenue $ 1,220
[a] & [C]
101-Cash
Date Explanation Ref. Dr. Cr. Balance
Nov.01 Opening Balance $ 2,001 - $ 2,001
Nov.-8 Saries & Wages Payable and Exp. J1 $ 1,700 $ 301
Nov.-10 Accounts Receivable J1 $ 3,620 - $ 3,921
Nov.-12 Service Revenue J1 $ 3,100 - $ 7,021
Nov.-20 Accounts Payable J1 - $ 2,700 $ 4,321
Nov.-22 Rent Expense J1 - $ 400 $ 3,921
Nov.-25 Salaries and Wages Expense J1 - $ 1,700 $ 2,221
Nov.-29 Unearned Rervice Revenue J1 $ 600 $ - $ 2,821
112-Accounts Receivable
Date Explanation Ref. Dr. Cr. Balance
Nov.01 Opening Balance $ 4,001 - $ 4,001
Nov.-10 Cash J1 - $ 3,620 $ 381
Nov.-27 Service Revenue J1 $ 2,200 - $ 2,581
126-Supplies
Date Explanation Ref. Dr. Cr. Balance
Nov.01 Opening Balance $ 1,001 - $ 1,001
Nov.-17 Accounts Payable J1 $ 700 - $ 1,701
Nov. 30 Supplies Expense (Adjusting Entry) - $ 605 $ 1,096
153-Equipment
Date Explanation Ref. Dr. Cr. Balance
Nov.01 Opening Balance $ 12,001 - $ 12,001
Nov.-15 Accounts Payable J1 $ 2,000 - $ 14,001
154-Accumulated Depreciation-Equipment
Date Explanation Ref. Dr. Cr. Balance
Nov. 01 Opening Balance - $ 2,001 $ 2,001
Nov. 30 Depreciation (Adjusting Entry) J1 - $ 200 $ 2,201
201-Accounts Payable
Date Explanation Ref. Dr. Cr. Balance
Nov. 01 Opening Balance - $ 2,001 $ 2,001
Nov. 15 Equipment J1 - $ 2,000 $ 4,001
Nov. 17 Supplies J1 - $ 700 $ 4,701
Nov.-20 Cash J1 $ 2,700 - $ 2,001
209-Unearned Service Revenue
Date Explanation Ref. Dr. Cr. Balance
Nov.01 Opening Balance - $ 1,001 $ 1,001
Nov. 29 Cash J1 - $ 600 $ 1,601
Nov. 30 Service Revenue (Adjusting Entry) $ 1,220 - $ 381
301-Owner's Capital
Date Explanation Ref. Dr. Cr. Balance
Nov.01 Opening Balance - $ 13,001 $ 13,001
212-Salaries and Wages Payable
Date Explanation Ref. Dr. Cr. Balance
Nov.01 Opening Balance - $ 1 $ 1
Nov. 08 Cash J1 $ 1 $ -
Nov. 30 Salaries & Wages Expense (adjusting Entries) - $ 350 $ 350
407-Service Revenue
Date Explanation Ref. Dr. Cr. Balance
Nov. 12. Cash J1 $ 3,100 $ 3,100
Nov. 27 Accounts Receivable J1 $ 2,200 $ 5,300
Nov. 30 Unearned Service Revenue (Adjusting Entry) - $ 1,220 $ 6,520
729-Rent Expense
Date Explanation Ref. Dr. Cr. Balance
Nov. 22 Cash J1 $ 400 $ 400
726-Salaries and Wages Expense
Date Explanation Ref. Dr. Cr. Balance
Nov. 8 Cash J1 $ 1,699 - $ 1,699
Nov. 25 Cash J1 $ 1,700 - $ 3,399
Nov. 30 Salaries & Wages Payable (Adjusting Entry) $ 350 - $ 3,749
631-Supplies Expense
Date Explanation Ref. Dr. Cr. Balance
Nov. 30 Supplies (adjusting entry) J1 $ 605 - $ 605
615-Depreciation Expense
Date Explanation Ref. Dr. Cr. Balance
Nov. 30 Accumulated Depreciation J1 $ 200 - $ 200
(d) & (f)
Hamm Equipment Repair
Trial Balance
As on 30 Nov, 2020 Adjusted Trial Balance
Particulars
DR. Cr. DR. Cr.
Cash $ 2,821 - $ 2,821 -
Accounts Receivable $ 2,581 - $ 2,581 -
Supplies $ 1,701 - $ 1,096 -
Equipment $ 14,001 - $ 14,001 -
Accumulated Depreciation - $ 2,001 - $ 2,201
Accounts Payable - $ 2,001 - $ 2,001
Unearned Service Revenue - $ 1,601 - $ 381
Owner's Capital - $ 13,001 - $ 13,001
Salaries and Wages Payable $ - $ 350
Service Revenue $ - $ 5,300 - $ 6,520
Rent Expense $ 400 - $ 400 -
Salaries and Wages Expense $ 3,399 - $ 3,749 -
Supplies Expense - - $ 605 -
Depreciation Expense - - $ 200 -
$ 24,903 $ 23,904 $ 25,453 $ 24,454
Difference in Trial Balance - $ 999 - $ 999
Total= $ 24,903 $ 24,903
### $ 25,453 $ 25,453
(g)-i
Hamm Equipment Repair
Income Statement
For the month of November, 2020
Particulars Amount
a) Total Revenue: $ 6,520
Service Revenue $ 6,520
b) Total Expense: $ 4,954
Rent Expense $ 400
Salaries and Wages Expense $ 3,749
Supplies Expense $ 605
Depreciation Expense $ 200
Net Profit during the period (a-b) $ 1,566
(g)-ii
Hamm Equipment Repair
Statement of Owner's Equity
As on 30 November, 2020
Particulars Amount
Opening Balance of Owner's Capital -
Owners Capital During the Period $ 13,001
Less: Drawings -
Add: Net Profit During the Period $ 1,566
Owner's Capital as on 30th November $ 14,567
(g)-iii
Hamm Equipment Repair
Statement of Financial Position
As on 30 November, 2020
Particulars Amount
Asset: $ 18,298
Cash $ 2,821
Accounts Receivable $ 2,581
Supplies $ 1,096
Equipment- $ 14,001 $ 11,800
Less:Accum. Dep . $ 2,201
Liabilities and Owner's Equity: $ 18,298
Owner's Capital $ 14,567
Salaries and Wages Payable $ 350
Unearned Service Revenue $ 381
Accounts Payable $ 2,001
Difference in Trial Balance $ 999
