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On August 31 2017 the account balances of Pitre Equipment Repair were as follows During September the following transactions were completed Sept 1 Borrowed $10000 from the bank and signed

On August 31, 2017, the account balances of Pitre Equipment Repair were as follows: During September, the following transactions were completed: Sept. 1 Borrowed $10,000 from the bank and signed a two-year, 5% note payable. 8 Paid $1,100 for employees salaries, of which $400 is for September and $700 for August. 10 Received $1,200 cash from customers on account. 12 Received $3,400 cash for services performed in September. 17 Purchased additional supplies on account, $1,500. 20 Paid creditors $4,500 on account. 22 Paid September and October rent, $1,000 ($500 per month). 25 Paid salaries, $1,200. 27 Performed services on account and billed customers for services provided, $900. 29 Received $700 from customers for future services. 30 Purchased additional equipment on account, $3,000. The company adjusts its accounts on a monthly basis. Adjustment data consist of the following: 1. Supplies on hand at September 30 cost $1,280. 2. Accrued salaries payable at September 30 total $775. 3. Equipment has an expected useful life of five years. 4. Unearned service revenue of $450 is still not earned at September 30. 5. Interest is payable on the first of each month. Instructions (a) Enter the August 31 balances in the general ledger accounts. (b) Journalize the September transactions. (c) Post to the ledger accounts. (d) Prepare a trial balance at September 30. (e) Journalize and post adjusting entries. (f) Prepare an adjusted trial bal

May 17 2020 View more View Less

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