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On August 1, 2022, the following were the account balances of D&D Repair Services.

	Debits		Credits
Cash	$ 6,040	Accumulated Depreciation - Equip.	$ 600
Accounts Receivable	2,910	Accounts Payable	2,300
Supplies	1,030	Unearned Service Revenue	1,260
Equipment	12,000	Salaries & Wages Payable	1,420
	$ 21,980	Common Stock	10,000
		Retained Earnings	6,400
			$ 21,980

During August, the following summary transactions were completed:

Aug. 5 Received $2,800 cash for services performed in August.

10 Paid $3,120 for salaries due employees, of which $1,700 is for August and

$1,420 is for July Salaries Payable.

12 Received $1,600 cash from customers in payment of account.

15 Purchased supplies on account for $860.

17 Purchased store equipment on account for $2,000.

20 Paid August rent of $580.

22 Paid salaries of $2,900.

25 Paid creditors $2,000 of accounts payable due.

27 Performed services worth $5,130 on account and billed customers.

29 Received $780 from customers for services to be provided in the future.

Adjustment data:

1. Supplies on hand are valued at $860.
2. Accrued salaries payable are $1,540.
3. Depreciation for the month is $420.
4. Services were performed to satisfy $1,000 of unearned service revenues.

Checkpoints:

Cash Balance: $2,920 Debits on Adjusted Trial Balance: $31,310 Total Assets: $22,520

Instructions:

• Journalize the August transactions.
• Post to the general ledger T accounts. Use Service Revenue, Depreciation Expense, Supplies Expense, Salaries & Wages Expense, and Rent Expense.
• Prepare the trial balance at August 31. Write the unadjusted trial balance in the first two columns of the trial balance worksheet.
• Journalize and post adjusting entries. Post adjusting entries both in general leger T accounts, and the middle two columns of the trial balance worksheet.
• Prepare the adjusted trial balance (in last two columns of trial balance worksheet)
• Prepare an income statement and a retained earnings statement for August and a classified balance sheet at August 31. Be sure to complete the proper headings for each financial statement.

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