Question

Question 2 On November 1, 2022, the following were the account balances of Carla Vista Equipment Repair. Cash Debit $ 3,520 3,090 1,850 10,730 Credit $ 500 3,030 Accounts Receivable Accumulated Depreciation-Equipment Accounts Payable Unearned Service Revenue Salaries and Wages Payable 400 Supplies Equipment 800 Common Stock Retained Earnings 10,730 3,730 $19,190 $19,190 During November, the following summary transactions were completed. Nov. 8 10 12 15 17 Paid $1,220 for salaries due employees, of which $420 is for November and $800 is for October salaries payable. Received $1,820 cash from customers in payment of account. Received $3,810 cash for services performed in November. Purchased store equipment on account $3,770. Purchased supplies on account $1,410. Paid creditors $2,560 of accounts payable due. Paid November rent $550. Paid salaries $1,070. Performed services on account worth $910 and billed customers. Received $770 from customers for services to be performed in the future. 20 22 25 27 29

Answer 1

Credit Debit 420 800 1,220 1,820 1,820 3,810 3,810 3,770 3,7701 1,410 November Journal Entries: Date Account titles and Explanations 8-Nov Salary expense Salary & Wages payable Cash (to record the amount for nov and oct salary) 10-Nov Cash Accounts Receivable (to record cash received from customers in payment of account) 12-Nov Cash Service Revenue (to record cash received for services performed) 15-Nov Store Equipment Accounts payable (to record store equipment purchased on account) 17-Nov Supplies Accounts payable (to record supplies purchased on account) 20-Nov Accounts payable Cash (to record payment made to creditors) 22-Nov Rent Cash (to record rent paid) 25-Nov Salaries Cash (to record salary paid) 27-Nov Accounts Receivable Service Revenue (to record services performed on account) 29-Nov cash Unearned service revenue Ito record amount received for services to be performed 1,410 2,560 2,560 550 550 1,070 1,070 910 910 770 770

Debit Credit 2,110 2,110 510 510 Adjustment Entries: Date Account titles and Explanations 1 Supplies expense(1,850+1,410-1,150) Supplies (to record the adjustment for supplies used) 2 Salary and wages expense Salary and wages payable (to record accrued salary and wages) 3 Deprication expense Accumulated Deprication (to record deprication expense) 4 Unearned service revenue Service Revenue (to record service performed for unearned service revenue) 290 290 510 510

Ledger accounts: Deprication expense 30-Nov 290 Retained Earnings bal 3,730 Accounts payable 20-Nov 2,560 Nov 1(bal) 15-Nov 17-Nov bal. 5,650 3,030 3,770 1,410 Rent expense 22-Nov 550 bal 550 400 Unearned service revenue 30-Nov 510 Nov 1(bal) 29-Nov bal 770 660 500 Accumulated Deprication Nov 1(bal) 30-Nov bal. 290 790 Common Stock Nov 1(bal bal. 10,730 10,730 30-Nov 2,110 Supplies Nov 1(bal) 1,850 17-Nov 1,410 bal. 1,150 Salaries and wages payable 8-Nov 800 Nov 1(bal) 30-Nov bal. 800 510 510 Salaries expense 8-Nov 420 25-Nov 1,070 30-Nov 510 bal. 2,000 Supplies expense 30-Nov 2,110

Unadjusted trial balance: Trial Balance November 30 Debit Credit Cash 4,520 Accounts Receivable 2,180 Supplies 3,260 Equipment 14,500 Accumulated Deprication-Equipment 500 Accounts payable 5,650 Unearned Service Revenue 1,170 Salaries and Wages Payable 0 Common Stock 10,730 Retained Earnings 3,730 Rent expense 550 Salaries expense 1,490 Service Revenue 4,720 Total 26,500 26,500

Adjusted trial balance: Trial Balance November 30 Debit Credit Cash 4,520 Accounts Receivable 2,180 Supplies 1,150 Equipment 14,500 Accumulated Deprication-Equipment 790 Accounts payable 5,650 Unearned Service Revenue 660 Salaries and Wages Payable 510 Common Stock 10,7301 Retained Earnings 3,730 Rent expense 550 Salaries expense 2,000 Service Revenue 5,230 Deprication expense 290 Supplies expense 2,110 Total 27,300 27,300

Income Statement For month ended November, 30 5,230 Revenues: Service Revenue Expenses: Salaries expense Rent expense Deprication expense Supplies expense Total expensess Net Income 2,000 550 290 2,110 4,950 280 Retained Earnings For month ended November 30 Retained Earnings, Nov 1 3,730 Add:Net Income 280 Retained Earnings, Nov30 4,010

Balance Sheet At November 30 Assets Current Assets Cash Accounts Receivable Supplies Total current assets Non-current assets: Equipment Less:Accumulated deprication equipment Total non-current assets Total assets 4,520 2,180 1,150 7,850 14,500 790 13,710 13,710 21,5601 5,650 510 660 6,820 Liabilities and Shareholder's Equity Accounts payable Salaries and wages payable Unearned service revenue Total liabilities Shareholder's Equity: Common stock Retained Earnings Total Shareholder's equity Total liabilities and Shareholder's equity 10,7301 4,010 14,740 21,5601