Problem 3-5A

On September 1, 2010, the account balances of Rand Equipment Repair were as follows.

No.		Debits		No.		Credits
101		Cash	$4,880		154		Accumulated Depreciation	$1,500
112		Accounts Receivable	3,520		201		Accounts Payable	3,400
126		Supplies	2,000		209		Unearned Service Revenue	1,400
153		Store Equipment	15,000		212		Salaries Payable	500
					301		J. Rand, Capital	18,600
			$25,400					$25,400

During September the following summary transactions were completed.

Sept.  8		Paid $1,400 for salaries due employees, of which $900 is for September.
10		Received $1,200 cash from customers on account.
12		Received $3,400 cash for services performed in September.
15		Purchased store equipment on account $3,000.
17		Purchased supplies on account $1,200.
20		Paid creditors $4,500 on account.
22		Paid September rent $500.
25		Paid salaries $1,250.
27		Performed services on account and billed customers for services provided $1,500.
29		Received $650 from customers for future service.

Adjustment data consist of:

1. Supplies on hand $1,200.
2. Accrued salaries payable $400.
3. Depreciation is $100 per month.
4. Unearned service revenue of $1,450 is earned.

Instructions

(a)	Enter the September 1 balances in the ledger accounts.
(b)	Journalize the September transactions.
(c)	Post to the ledger accounts. Use J1 for the posting reference. Use the following accounts: No. 407 Service Revenue, No. 615 Depreciation Expense, No. 631 Supplies Expense, No. 726 Salaries Expense, and No. 729 Rent Expense.
(d)	Prepare a trial balance at September 30.
(e)	Journalize and post adjusting entries.
(f)	Prepare an adjusted trial balance.
(g)	Prepare an income statement and an owner’s equity statement for September and a balance sheet at September 30. FOLLOW THE LINK TO GET THE ANSWER!!