On October 31, 2018, Alou Equipment Repair Corp. s opening trial balance was as follows. The company 1 answer below »

On October 31, 2018, Alou Equipment Repair Corp. s opening trial balance was as follows. The company adjusts its accounts monthly. During November, the following transactions were completed: Nov. 9 Paid $2,200 to employees for salaries due, of which $1,000 is for October salaries payable and $1,200 for November. 13 Issued common shares for $5,000. 13 Received $12,400 cash from customers in payment of accounts. 19 Received $11,400 cash for services performed in November. 20 Purchased supplies on account, $600. Nov. 21 Paid creditors $4,600 of accounts payable due. 23 Paid November rent, $600. 23 Paid salaries, $2,400. 27 Performed services on account, $3,800. 28 Declared and paid a cash dividend, $500. 30 Received $1,100 from customers for services to be performed in the future. Adjustment data for the month: 1. Supplies on hand are $1,000. 2. Accrued salaries payable are $1,000. 3. The equipment has an estimated useful life of five years and Alou uses straight-line depreciation. 4. Unearned revenue of $800 was earned during the month. 5. Income tax payable is estimated to be $1,100. Instructions (a) Prepare journal entries to record the November transactions. (b) Set up T accounts, enter any opening balances, and post the journal entries prepared in part (a). (c) Prepare a trial balance at November 30. (d) Prepare and post the adjusting journal entries for the month. (e) Prepare an adjusted trial balance at November 30.

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