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Cumulative Coverage - Chapters 1 to 3 Prepare and post transaction and adjusting entries for prepayments. (LO 2, 4) AP On August 31, 2017, the account balances of Pitre Equipment Repair were as follows: PITRE EQUIPMENT REPAIR Trial Balance August 31, 2017 Debit Credit Cash $ 1,880 3,720 800 15,000 Accounts receivable Supplies Equipment Accumulated depreciation Accounts payable Unearned revenue equipment $ 1,500 3,100 400 700 Salaries payable R. Pitre, capital 15,700 $21,400 $21,400 During September, the following transactions were completed: Sept. 1 Borrowed $10,000 from the bank and signed a two-year, 5% note payable. 8 Paid $1,100 for employees' salaries, of which S400 is for September and $700 for August 10 Received $1,200 cash from customers on account. 12 Received $3,400 cash for services performed in September 17 Purchased additional supplies on account, $1,500. 20 Paid creditors $4,500 on account 22 Paid September and October rent, $1,000 ($500 per month). 25 Paid salaries, $1,200. 27 Performed services on account and billed customers for services provided, $900. 29 Received $700 from customers for future services. 30 Purchased additional equipment on account, $3,000 The company adjusts its accounts on a monthly basis. Adjustment data consist of the following: 1. Supplies on hand at September 30 cost $1,280. 2. Accrued salaries payable at September 30 total $775 3. Equipment has an expected useful life of five years. 4. Unearned service revenue of $450 is still not earned at September 30. 5. Interest is payable on the first of cach month. Instructions (a) Enter the August 31 balances in the general ledger accounts. (b) Journalize the September transactions. (c) Post to the ledger accounts. (d) Prepare a trial balance at September 30. (e) Journalize and post adjusting entries. (1) Prepare an adjusted trial balance. (8) Prepare an income statement and a statement of owner's equity for September, and a balance sheet

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