On September 1, 2014, the account balances of Percy Equipment Repair were as follows.

Cash

Debit

Credit

101

$ 4,880

154 Accumulated Depreciation—Equipment $ 1,500

112

Accounts Receivable

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

301 Owner's Capital

18,600

$25,400

$25,400

During September, the following summary transactions were completed.

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 $2,100 for these services.

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. Services related to unearned service revenue of $1,450 were 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. 407 Service Revenue, No. 615 Depreciation Expense, No. 631 Supplies 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 an owner's equity statement for September and a balance sheet at September 30.