Question

On August 1,2019, the following were the account balances of B&B Repair Services. Credit Debit 6,040 Accumulated Depreciation-Equipment $ 600 Cash Accounts Receivable Notes Receivable Supplies Equipment 2,910 4,000 1,030 10,000 Accounts Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings 2,300 1,260 1,420 12,000 6,400 $23,980 $23,980 During August, the following summary transactions were completed. Paid $400 cash for advertising in local newspapers. Advertising flyers will be included with newspapers delivered during August and September. Paid August rent $380. Received $1,200 cash from customers in payment on account. Paid $3,120 for salaries due employees, of which $1,700 is for August and $1,420 is for July salaries payable. Received $2,800 cash for services performed in August. Purchased store equipment on account $2,000. Paid creditors $2,000 of accounts payable due. Aug. 1 3 5 10 12 15 20 22 Purchased supplies on account $800 25 Paid $2,900 cash for employees' salaries. 27 Billed customers $3,760 for services performed. 29 Received $780 from customers for services to be performed in the future. Adjustment data: 1.A count shows supplies on hand of $960. 2.Accrued but unpaid employees' salaries are $1,540. 3.Depreciation on equipment for the month is $320. 4.Services were performed to satisfy $800 of unearned service revenue. .5.One month's worth of advertising services has been received. 6.0ne month of interest revenue related to the $4,000 note receivable has accrued. The 4-month note has a 6% annual interest rate. (Hint: Use the formula from Illustration 3-17 to compute interest.) Instructions a. Enter the August 1 balances in the ledger accounts. (Use T-accounts.) b. Journalize the August transactions. c. Post to t Service Revenue, Interest Revenue, Advertising Expense, Depreciation Expense, Supplies Expense, Salaries and Wages Expense, and Rent Expense. d. Prepare a trial balance at August 31. e. Journalize and post adjusting entries. f. Prepare an adjusted trial balance he ledger accounts. B&B's chart of accounts includes Prepaid Advertising, Interest Receivable, g Prepare an income statement and a retained earnings statement for August and a classified balance sheet at August 31. h. journalize and post closing entries and complete the closing process. i. Prepare a post-closing trial balance at August 31.

Answer 1

Question is related to Full accounting cycle of B&B Repair:
Please hit LIKE button if this helped. For any further explanation, please put your query in comment Date Account Debit Credit Aug 1 Aug 1 Prepaid Advertising Expense 400 Cash 400 Aug 3Rent Expense Aug 3 380 Cash S380 Cash 1,200 Aug 5 Aug 5 Accounts Receivable $ 1,200 Aug 10 Aug 10 Aug 10 Salaries and Wages Payable Salaries and Wages Expense 1,420 1,700 Cash 3,120 $ 2,800 Aug 12 Aug 12 Cash Service Revenuc $ 2,800 Aug 15Equipment Aug 15 Accounts Payable $2,000 $ 2,000 Au 20 Accounts Payable Aug 20 Cash $ 2,000 $ 2,000 Aug 22 Aug 22 Supplies $800 Accounts Payable $ 800 Aug 25Salaries and Wages Expense Aug 25 $ 2,900 Cash S 2,900 Aug 27 Aug 27 Accounts Receivable Service Revenue 3,760 $ 3,760 Aug 29 Aug 29 Cash $780 Unearned Service Re venuC $780 Adjusting Entries: Supplies Expense 870 1030+800-960 $870 Salaries and Wages Expense $ 1,540 Salaries and Wages Payable S 1,540 Depreciation Expense $320 Accumulated Deprciation $320 Unearned Service Revenue 800 Service Revenue $800 Advertising Expense $ 200 Prepaid Advertising Expense S 200 Interest Receivable 4000 6% 1/12 Interest Revenue 20 Closing Entries: Service Revenue Interest Revenue $7,360 $ 20 Income Summary 7,380 Income Summary $ 7,910 Salaries and Wages Expense Rent Expense Depreciation Expense Advertising Expense Supplies Expense $6,140 $380 320 $200 $870 Retained Eaning $530 Income Summary $530