Question

On November 1, 2017, the following were the account balances of Soho Equipment Repair. Cash Accounts Receivable Supplies Equipment Debit $ 3,250 3,080 1,580 10,460 Credit $ 500 2,760 400 Accumulated Depreciation-Equipment Accounts Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings 790 10,460 3,460 $18,370 $18,370 During November, the following summary transactions were completed. Nov. 8 10 12 15 17 Paid $1,220 for salaries due employees, of which $430 is for November and $790 is for October salaries payable. Received $1,900 cash from customers in payment of account. Received $3,800 cash for services performed in November. Purchased store equipment on account $3,530. Purchased supplies on account $1,410. Paid creditors $2,560 of accounts payable due. Paid November rent $500. Paid salaries $1,080. Performed services on account worth $960 and billed customers. Received $830 from customers for services to be performed in the future. 20 22 25 27 29

Answer 1

1) Retained Earnings Statement

Soho Equipment Repair
Retained Earnings Statement
For the Month Ended November 30, 2017
Beginning Balance	$                 3,460
Add:Net Income	$                 2,750
Retained Earnings Closing Balance	$                 6,210

2) Balance Sheet:

Soho Equipment Repair
Balance sheet
For the Month Ended November 30, 2017
Assets			Liabilities
Current assets:			Current liabilities:
Cash		$          4,420	Account Payable	$               5,140
Accounts Receivable		$          2,140	Unearned Service Revenue	$               1,230
Supplies		$          2,990	Salaries and wages Payable	$                      -
Total current assets		$          9,550	Total current liabilities	$               6,370
Property,plant, and equipment:
Equipment	$   13,990		Stockholders` Equity
Less: Accumulated Depreciation	$      (500)		Common Stock	$            10,460
Net Equipment		$        13,490	Retained Earnings	$               6,210
Total Long-term assets		$        13,490	Total stockholders` equity	$            16,670
Total Assets		$        23,040	Total liabilities and stockholders` equity	$            23,040

Working:

Soho Equipment Repair
Income statement
For the Month Ended November 30, 2017
Revenue
Sales		$           4,760
Total Revenue (A)		$           4,760
Expenses:
Salaries expense	$                    1,510
Rent expense	$                        500
Total Expense (B)		$           2,010
Net Income (A-B)		$           2,750