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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:Adjustment data consist of:
1. Supplies on hand $1,400.
2. Accrued salaries payable $350.
3. Depreciation for 2016 is $200.
4. Services related to unearned service revenue of $1,220 were performed.
5. Adjust interest on note payable and note receivable.
6. Note payable of $5,000 is payable in 2017.
Instructions:
(a) Journalize and post the transactions.
(b) Prepare a trial balance.
(c) Journalize and post the adjusting entries and produce an adjusted trial balance.
(d) Prepare a worksheet.
(e) Prepare the income statement and owner's equity statement and a classified balance sheet.
(f) Prepare closing entries and a post-closing trial balance.

Transcribed Image Text:Problem-01
On January 1, 2016, the account balances of Hamm Equipment Repair were as follows.
No.
Debit No.
Credit
$ 2,400 154 Accumulated Depreciation-Equipment $ 2,000
4,250 201 Accounts Payable
1,800 209 Unearned Service Revenue
12,000 212 Salaries and Wages Payable
101 Cash
2,600
1,200
112 Accounts Receivable
126 Supplies
153 Equipment
700
301 Owner's Capital
13,950
$20,450
$20,450
During 2016, the following summary transactions were completed.
January: 8 Paid $1,700 for salaries due employees, of which $700 is for 2015 salaries.
January: 10 Received $3,620 cash from customers on account.
February: 12 Received $3,100 cash for services performed.
February 28: Performed services for Roland Co. on account at 2/10, n/30 and billed for $ 5,000
March: 5 Purchased equipment on account $2,000.
March 31: The amount receivable from Roland Co. becomes due but he is unable to make
payment, however Roland provided a 12% nine months note to satisfy the amount due.
May: 17 Purchased supplies on account $700.
June 30: Hamm borrows money from Z Co. $ 10,000 by signing a 6% 2 years notes payable in
two installments.
July: 2 Paid creditors on account $2,700.
October 22: Paid rent $400 for 2016.
November 25: Paid salaries $1,700.
December 27: Performed services on account and billed customers for these services $2,200.
December 31: Received $600 from customers for future service.
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