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. Purchased additional supplies on account, $1,300. 20 Paid creditors $2,300 on account. 17 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. 30 Paid J. Alou $800 cash for personal use. 21 22 27 29 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.
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. Purchased additional supplies on account, $1,300. 20 Paid creditors $2,300 on account. 17 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. 30 Paid J. Alou $800 cash for personal use. 21 22 27 29 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.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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Transcribed Image Text:During September, the following transactions were completed:
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.
Purchased additional supplies on account, $1,300.
20 Paid creditors $2,300 on account.
Sept. 1
17
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
(h) Prepare and post closing entries.
(i) Prepare post-closing trial balance at September 30.
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