50.1K

Verified Solution

Link Copied!

Marigold Equipment Repair began operating in September 2022. It prepares financial statements at the end of each month. On November 1, 2022, a tabular summary includes the following information. Note that Marigold began the month with $ 2,820 in Retained Earnings. This balance represents the results of its first two months of business. Assets Liabilities Stockholders Equity Accts. Rec. Acc. Depr. Equip. Unearn. Serv. Rev. Cash Accts. Pay + Supplies + Equip. Sal./Wages + Pay. Com. Stock Retained Earnings + + + + 2,624 + 2,734 + 1,050 + 9.400 470- 2.162 + 376 + 580+ 9.400 + 2,820 During November, the following summary transactions were completed. Nov. 8 10 12 Paid $ 1,144 for salaries due employees, of which $ 564 is for November and $ 580 is for October salaries payable. Received $ 1,692 cash from customers in payment of account Received $ 3,478 cash for services performed in November, Purchased store equipment on account $ 3,384, Purchased supplies on account $ 1.222. Paid creditors $ 2,350 of accounts payable due. 15 17 20 22 Paid November rent $ 454 25 Paid salaries $ 940 27 Performed services on account worth $ 846 and billed customers 29 Received $ 705 from customers for services to be performed in the future. Adjustment data: 1. Supplies on hand are valued at $ 1.034. 2. 3. Accrued salaries payable are $ 454 Depreciation for the month is $ 235. Services were performed to satisfy $ 470 of unearned service revenue. 4 Use the tabular summary below to complete the following (if a transaction results in a decrease in Assets, Liabilities or Stockholders Equity, place a negative sign for parentheses) in front of the amount entered for the particular Asset. Liability or Equity item that was reduced.) (a) Record the November transactions. Include explanations for amounts in the revenue or expense column. (b) Compute the balance in each column after recording the November 29 transaction (c) Record adjustments (d) Compute the adjusted balance in each column. Retained Earnings 2.820 Rev. Exp. Div. 0 1144 O Salaries & Wages Expense 0 0 0 3478 0 0 Service Revenue 0 0 0 0 0 0 0 0 454 0 Rent Expense 0 940 0 Salaries & Wages Expense 846 0 0 Service Revenue 0 5186 2538 0

Answer & Explanation Solved by verified expert

See Answer