On September 1, 2020, the account balances of Tom Cruise Repair, Inc. were as follows. No Debit No Credit 101 Cash £4,880 158 Accumulated DepreciationEquipment £2,100 112 Accounts Receivable 3,520 201 Accounts Payable 3,400 126 Supplies 2,000 209 Unearned Service Revenue 1,400 157 Equipment 18,000 212 Salaries and Wages Payable 500 311 Share Capital-Ordinary 10,000 320 Retained Earnings 11,000 £28,400 £28,400 During September, the following summary transactions were completed. Sept. 8 Paid £1,700 for salaries due employees, of which £1,200 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 £1,050. 27 Performed services on account and billed customers for services provided £1,600. 29 Received £750 from customers for future service. Adjustment data consist of: 1. Supplies on hand £1,700. 2. Accrued salaries payable £400. 3. Depreciation is £140 per month. 4. Unearned service revenue of £1,450 is recognized for services performed. 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. 400 Service Revenue, No. 631 Supplies Expense, No. 711 Depreciation Expense, No. 726 Salaries and Wages 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 a retained earnings statement for September and a statement of financial position at September 30.

Question

On September 1, 2020, the account balances of Tom Cruise Repair, Inc. were as
follows.
No Debit No Credit
101 Cash £4,880 158 Accumulated DepreciationEquipment
£2,100
112 Accounts
Receivable
3,520 201 Accounts Payable 3,400
126 Supplies 2,000 209 Unearned Service Revenue 1,400
157 Equipment 18,000 212 Salaries and Wages Payable 500
311 Share Capital-Ordinary 10,000
320 Retained Earnings 11,000
£28,400 £28,400
During September, the following summary transactions were completed.
Sept. 8 Paid £1,700 for salaries due employees, of which £1,200 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 £1,050.
27 Performed services on account and billed customers for services provided
£1,600.
29 Received £750 from customers for future service.
Adjustment data consist of:
1. Supplies on hand £1,700.
2. Accrued salaries payable £400.
3. Depreciation is £140 per month.
4. Unearned service revenue of £1,450 is recognized for services performed.
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. 400 Service Revenue, No. 631 Supplies Expense, No. 711
Depreciation Expense, No. 726 Salaries and Wages 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 a retained earnings statement for September and a
statement of financial position at September 30.

Expand
Expand

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Can audit managers on the audit engagement team, who are also attorneys admitted to the state bar, a...

A: Auditing means the inspection of financial accounts of the company to determine if the records are a...

Q: Cost classifications For each of the following costs, check the columns that most likely apply (both...

A: Introduction:   There are three types of costs according to the unit of production; Variable, Fixed ...

Q: BAYWEST Stationery & Supplies located in Montego Bay, Jamaica, sells a variety of school supplie...

A: Perpetual inventory system: Under this inventory system, the records of inventory are continuously u...

Q: During March, the activities of Evergreen Landscaping included the following transactions andevents,...

A: Expense: It can be defined as the cost incurred on running the business operations to generate reven...

Q: Indicate all correct answers. In the accounting cycle:a. Transactions are posted before they are jou...

A: Click to see the answer

Q: At the end of April, the first month of the year, the usual adjusting entry transferring rent earned...

A: The terms overstatement and understatement indicates the presence of error in the accounting transac...

Q: Which of the following is NOT true of regression techniques for estimating costs?      a) They permi...

A: Cost:   Cost can be defined as the cash and cash equivalent which is incurred against the products o...

Q: Atlantic Shipping and Transportation Ltd divides its operations into four kinds, and its headquarter...

A: Calculate the impairment loss when corporate assets are allocated on a reasonable and consistent bas...

Q: Which of the following would not result in the audit team’s selecting a larger sample of controlsfor...

A: Sampling: Sampling allows an individual to obtain information about the population of interest in th...

Q: External users of fi nancial accounting information includeall of the following except:a. Investors....

A: External Users:   The external users are the users of the information who are outside the organizat...

Q: Attainable standards, as compared to ideal standards, a. do not allow for operating inefficiencies. ...

A: Attainable standards: These are the standards that are easily achievable in the normal circumstances...

Q: Equipment with an estimated market value of $29,149 is offered for sale at $45,171. The equipment is...

A: Note: When any assets is purchased then that assets should always be recorded in the books at acquis...

Q: The Parkview Hospital is considering the purchase of a new autoclave. This equipment will cost $150,...

A: Click to see the answer

Q: explain why the factory overhead balance must be disposed of at year end?

A: Over and under applied manufacturing or factory overheads:- These overheads incurred when the differ...

Q: Discuss the influence of alternative inventory cost flow assumptions and depreciation methods on tur...

A: Step 1 Turnover ratios are the sales proportionate to the inventory, mainly which states the outflow...

Q: Accounting is sometimes described as the language of busi-ness. What is meant by this description?

A: Accounting: It refers to a process of recording and summarizing the financial transactions and event...

Q: Sample Results Evaluation. Kendall Jackson, CPA, is examining the operating effectiveness of the int...

A: Since there are multiple sub parts in the question, the answer will be given for first three sub par...

Q: Purchases budget—analytical Precious Stones, Ltd., is a retail jeweler. Most of the firm’s business ...

A: Cost of goods sold is the total cost incurred for production and selling a product. It includes all ...

Q: Auditors consider statistical sampling to be characterized by the following:a. Representative sample...

A: Click to see the answer

Q: In January 2020, a retailer sells 100 paper shredders to customers for $100 each. The terms of the s...

A: Refund liability: When a company sells its products with a right of return to customers it has to r...

Q: Listed below in random order are the eight steps comprising a complete accounting cycle:Prepare a tr...

A: Click to see the answer

Q: CVP analysis—effects of change in cost structure; breakeven Austin, Inc.,produces small-scale replic...

A: Hello, since your question has multiple parts we will solve the first question for you. If you want ...

Q: Instructions Cesar Mahusay operates an accounting firm. Shown below are selected accounts that appe...

A: Some entries have to be passed to adjust arrive at the adjusted balances for the accounts

Q: What is meant by the statement that the financial statementsarticulate ?

A: The statement “financial statements are articulated" means that measurements in the balance sheet ar...

Q: Cost accounting The master budget at Western Company last period called for sales of 226,900 units a...

A: Master budget: Master budget can be defined as the overview or the combination of all the smaller bu...

Q: Milford Corporation pays its employees on the fifteenth of each month. Accrued, but unpaid,salaries ...

A: Adjusting journal entry: To record any unrecognized income or expenses for the period company made a...

Q: [The following information applies to the questions displayed below.]   Cane Company manufactures tw...

A: Financial advantage (disadvantage) of accepting the new customer's order = Revenue from Special orde...

Q: Define the accounting equation and the expand version of the accounting equation. Provide examples o...

A: The accounting equation is considered to be the foundation of the double entry accounting system. On...

Q: Jose is a single taxpayer who is self-employed and who also owns a rental property. Given the follow...

A: Adjusted Gross Income: It is the taxable income of an individual from all sources such as business i...

Q: Oriole Company owns 40% interest in the stock of Sandhill Corporation. During the year, Sandhill pay...

A: Consolidated net income: Net income calculated at the end of a particular period by the parent compa...

Q: The auditor needs to assess management integrity as a potential indicator of inherent risk, particul...

A: Management Integrity is the inbuilt quality of the managers to follow the code of ethics defined for...

Q: Select the correct answer. Aster Inc. uses the LIFO method for calculating its cost of gonds sold an...

A: Cost of goods sold is defined as the entire cost incurred upon the goods for final sale purpose. It ...

Q: You would like to retire in 50 years as a millionaire. If you have $1000 today, what rate of return ...

A: Given: Number of years = 50  Future value = $1,000,000 Present value = $1,000  

Q: Direct Materials Purchases Budget Anticipated sales for Safety Grip Company were 42,000 passenger ca...

A: Click to see the answer

Q: Find for Armstrong Company and Blair Company : Liquidity Ratio (a) Current Ratio Market tests (b) Pr...

A: Liquidity ratios: These ratios reflect the liquidity position of the company to settle its short ter...

Q: The unadjusted trial balance of Helena’s Hire Cars is shown below (ignore GST).   Helena’s Hire ...

A: Trial balance is composed of the list of all existing general ledger accounts of an entity. The list...