On November 1, 2014, the following were the account balances of Rijo Equipment R
ID: 2425114 • Letter: O
Question
On November 1, 2014, the following were the account balances of Rijo Equipment Repair. Debit Credit Cash $ 2,790 Accumulated Depreciation—Equipment $500 Accounts Receivable 2,910 Accounts Payable 2,300 Supplies 1,120 Unearned Service Revenue 400 Equipment 10,000 Salaries and Wages Payable 620 Common Stock 10,000 Retained Earnings 3,000 $16,820 $16,820 During November, the following summary transactions were completed. Nov. 8 Paid $1,220 for salaries due employees, of which $600 is for November and $620 is for October salaries payable. 10 Received $1,800 cash from customers in payment of account. 12 Received $3,700 cash for services performed in November. 15 Purchased store equipment on account $3,600. 17 Purchased supplies on account $1,300. 20 Paid creditors $2,500 of accounts payable due. 22 Paid November rent $480. 25 Paid salaries $1,000. 27 Performed services on account worth $900 and billed customers. 29 Received $750 from customers for services to be provided in the future. Adjustment data: 1. Supplies on hand are valued at $1,100. 2. Accrued salaries payable are $480. 3. Depreciation for the month is $250. 4. Services were performed to satisfy $500 of unearned service revenue.
Instructions 1..Prepare an income statement and a retained earnings statement for November and a classified balance sheet at November 30
Explanation / Answer
Adjusted Trial balance as on November 30:
Accounts Receivable
Balance Sheet as on 30 November
Income Statement:
Retained earnings statement for November:
Opening balance : $3000
Add: Net Income during November $970
Closing balance on November 30 = $3970
Debit $ Credit $ Cash 3840 Accumulated Depreciation 750Accounts Receivable
2010 accounts payable 4700 Supplies 1100 Unearned service revenue 650 Equipement 13600 Salaries and wages payable 480 common stock 10000 Retained Earnings 3000 Salaries and wages 2080 Revenue 5100 Rent expense 480 Supplies expense 1320 Depreciation 250 24680 24680Related Questions
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