Abbot Equipment Repair has a September 30 year end. Thecompany adjusts and closes its accounts on an annual basis. OnAugust 31, 2021, the account balances of Abbot Equipment Repairwere as follows:
ABBOT EQUIPMENT REPAIR
Trial Balance
August 31, 2021
????????Debit ??Credit
Cash ? ???????$ 2,790 ? ?
Accounts receivable ?????? 7,910 ?
Supplies ??????? 8,500 ?
Equipment ??????? 9,000 ?
Accumulated depreciation—equipment ??????$ 1,800
Accounts payable ???????? 3,100
Unearned revenue ???????? 400
J. Abbot, capital ???????? 21,200
J. Abbot, drawings ?????? 15,600 ?
Service revenue ???????? 49,600
Rent expense ??????? 5,500 ?
Salaries expense ?????? 24,570 ?
Telephone expense ?????? 2,230 ??
???Totals?????$76,100 ?$76,100
During September, the following transactions werecompleted:
Sept. 1 Borrowed $10,000 from the bank and signed a two-year,5% note payable.
2 ?Paid September rent, $500.
8 ?Paid employee salaries, $1,050.
12 ?Received $1,500 cash from customers on account.
15 ?Received $5,700 cash for services performed inSeptember.
17 ?Purchased additional supplies on account, $1,300.
20 ?Paid creditors $2,300 on account.
21 ?Paid September telephone bill, $200.
22 ?Paid employee salaries, $1,050.
27 ?Performed services on account and billed customers forservices provided, $900.
29 ?Received $550 from customers for services to be providedin the future.
30 ?Paid J. Abbot $800 cash for personal use.
Adjustment data consist of the following:
Supplies on hand at September 30 cost $1,000.
Accrued salaries payable at September 30 total $630.
The equipment has an expected useful life of five years.
Unearned revenue of $450 is still not earned at September30.
Interest is payable on the first of each month.
Instructions
e. Journalize and post adjusting entries.
f. Prepare an adjusted trial balance at September 30.
g. Prepare an income statement and a statement of owner'sequity, and a classified balance sheet.
h. Prepare and post-closing entries.
i. Prepare post-closing trial balance at September 30.
