ull chatr 10:37 AM © 79% BAF Text Ch 04.pdf ALOU EQUIPMENT REPAIR Trial Balance August 31, 2014 Debit Credit $ 2,790 7,910 Cash Accounts receivable Supplies Equipment Accumulated depreciation-equipment Accounts payable Unearned revenue J. Alou, capital J. Alou, drawings 8,500 9,000 $ 1,800 3,100 400 21,200 15,600 Service revenue 49,600 5,500 Rent expense Salaries expense Telephone expense 24,570 2,230 $76,100 $76,100 During September, the following transactions were completed: Sept. 1 2 Borrowed $10,000 from the bank and signed a two-year, 5% note payable. Paid September rent, $500. Paid employee salaries, $1,050. Received $1,500 cash from customers on account. Received $5,700 cash for services performed in September. Purchased additional supplies on account, $1,300. Paid creditors $2,300 on account. 8. 12 15 17 20 Paid September telephone bill, $200. Paid employee salaries, $1,050. Performed services on account and billed customers for services provided, $900. Received $550 from customers for services to be provided in the future. Paid J. Alou $800 cash for personal use. 21 22 27 29 30 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) Prepare a trial balance at September 30. (e) Journalize and post adjusting entries. (f) Prepare an adjusted trial balance at September 30. (g) Prepare an income statement and a statement of owner's equity, and a classified balance sheet. (h) Prepare and post closing entries. (i) Prepare post-closing trial balance at September 30. 196 | CHAPTER 4 COMPLETION OF THE ACCOUNTING CYCLE A Company Income Statement For the Period Ending Date Revenue Operating Expenses Total Operating Expenses 0.00 Net Income (Loss) 0.00 A Company Statement of Owners Equity For the Period Ending Date J. Alou, Capital Balance Start of Period (Date!!!) Add: Investments Add: Net Income (Loss) Less Drawings Change In Capital Balance End of Period (Date!!!) 21200.00 0.00 0.00 21200.00