On September 1, 2012, the account balances of Moore Equipment Repair were as follows.

No. Debits No.

101 Cash 4880 154 Accumulated Depreciation—Equipment 1500
112 Accounts R 3,520 201 Accounts Payable 3,400
126 Supplies 2,000 209 Unearned Service Revenue 1,400
153 Equipment 15,000 212 Salaries and Wages Payable 500
25400 301 Owner’s Capital 18,600
25400
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 $2,100.
29 Received $650 from customers for future service.
Adjustment data consist of:
1. Supplies on hand $1,300.
2. Accrued salaries payable $300.
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 additional accounts: No. 40
(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.
 No. 407 Service Revenue, No. 615 Depreciation Expense, No. 631 Supplies Expense,
No. 726 Salaries and Answer B
Journal Entries
Date Accounts Title Debit Credit
Sep-08 Salaries and Wages Payable $ 500
Salaries and Wages Expense $ 900
Cash $ 1,400

Sep-10 Cash $ 1,200

Accounts Receivable $ 1,200

Sep-12 Cash $ 3,400

Service Revenue $ 3,400

Sep-15 Equipment $ 3,000

Accounts Payable $ 3,000

Sep-17 Supplies $ 1,200

Accounts Payable $ 1,200

Sep-20 Accounts Payable $ 4,500

Cash $ 4,500

Sep-22 Rent expense $ 500

Cash $ 500

accounts: No. 40 Sep-25 Salaries and Wages Expense $ 1,250

Cash $ 1,250

Sep-27 Accounts Receivable $ 2,100

ance sheet at September 30. Service Revenue $ 2,100

Sep-29 Cash $ 650

Unearned Service Revenue $ 650

Answer E
Adjusting Entries
S.No Accounts Title Debit Credit
1 Supplies expense $ 1,900
Supplies $ 1,900
($ 2,000 add $ 1,200 less $ 1,300)

2 Salaries and Wages Expense $ 300

Salaries and Wages Payable $ 300
3 Depreciation expense $ 100
Accumulated Depreciation—Equipment $ 100

4 Unearned Service Revenue $ 1,450

Service Revenue $ 1,450
Answer A & C
Ledger accounts
Cash
Balance $ 4,880 Sep-08 $ 1,400
Sep-10 $ 1,200 Sep-20 $ 4,500
Sep-12 $ 3,400 Sep-22 $ 500
Sep-29 $ 650 Sep-25 $ 1,250
Balance $ 2,480
$ 10,130 $ 10,130

Accounts Receivable
Balance $ 3,520 Sep-10 $ 1,200
Sep-27 $ 2,100 Balance $ 4,420
$ 5,620 $ 5,620

Supplies
Balance $ 2,000 Supplies $ 1,900
Sep-17 $ 1,200 Balance $ 1,300
$ 3,200 $ 3,200

Equipment
Balance $ 15,000 Balance $ 18,000
Sep-15 $ 3,000
$ 18,000 $ 18,000

Accumulated Depreciation—Equipment
Balance $ 1,600 Balance $ 1,500
Depreciation expense $ 100
$ 1,600 $ 1,600

Accounts Payable
Sep-20 $ 4,500 Balance $ 3,400
Balance $ 3,100 Sep-15 $ 3,000
Sep-17 $ 1,200
$ 7,600 $ 7,600

Unearned Service Revenue

Service Revenue $ 1,450 Balance $ 1,400
Balance $ 600 Sep-29 $ 650
$ 2,050 $ 2,050

Salaries and Wages Payable

Sep-08 $ 500 Balance $ 500
Balance $ 300 Salaries and Wages Expense $ 300
$ 800 $ 800
Owner’s Capital
Balance $ 18,600 Balance $ 18,600

Salaries and Wages Expense

Sep-08 $ 900 Balance $ 2,450
Sep-25 $ 1,250
Salaries and Wages Payable $ 300
$ 2,450 $ 2,450

Service Revenue
Balance $ 6,950 Sep-12 $ 3,400
Sep-27 $ 2,100
Unearned Service Revenue $ 1,450
$ 6,950 $ 6,950
Rent expense
Sep-22 $ 500 Balance $ 500

Supplies expense
Supplies $ 1,900 Balance $ 1,900

Depreciation expense
Accumulated Depreciation—Equipment $ 100 Balance $ 100
Answer D
Trial Balance
Accounts Title Debit Credit
Cash $ 2,480
Accounts Receivable $ 4,420
Supplies $ 3,200
Equipment $ 18,000
Accumulated Depreciation—Equipment $ 1,500
Accounts Payable $ 3,100
Unearned Service Revenue $ 2,050
Salaries and Wages Payable $ -
Owner’s Capital $ 18,600
Salaries and Wages Expense $ 2,150
Service Revenue $ 5,500
Rent expense $ 500

$ 30,750 $ 30,750
Answer F
Adjusted Trial Balance
Accounts Title Debit
Cash $ 2,480
Accounts Receivable $ 4,420
Supplies $ 1,300
Equipment $ 18,000
Accumulated Depreciation—Equipment
Accounts Payable
Unearned Service Revenue
Salaries and Wages Payable
Owner’s Capital
Salaries and Wages Expense $ 2,450
Service Revenue
Rent expense $ 500
Supplies expense $ 1,900
Depreciation expense $ 100

$ 31,150

Answer G
Income Statement
Service Revenue
Salaries and Wages Expense $ 2,450
Rent expense $ 500
Supplies expense $ 1,900
Depreciation expense $ 100
Net Income

Owner's equity statement

Beginning Balance
add: net income
Ending Balance

Balance Sheet
Assets Amount
Cash $ 2,480
Accounts Receivable $ 4,420
Supplies $ 1,300
Equipment $ 18,000

$ 26,200
Credit

$ 1,600
$ 3,100
$ 600
$ 300
$ 18,600
$ 6,950

$ 31,150

$ 6,950

$ 4,950
$ 2,000

$ 18,600
$ 2,000
$ 20,600

Liabilities & Capital Amount

Owner’s Capital $ 20,600
Accumulated Depreciation—Equipment $ 1,600
Accounts Payable $ 3,100
Unearned Service Revenue $ 600
Salaries and Wages Payable $ 300

$ 26,200