Question

GLS Problem ACR4-3

Problem:

On August 1, 2017, the following were the account balances ofB&B Repair Services.

	Debits			Credits
Cash	$ 6,040		Accumulated Depreciation—Equipment	$ 600
Accounts Receivable	2,910		Accounts Payable	2,300
Notes Receivable	4,000		Unearned Service Revenue	1,260
Supplies	1,030		Salaries and Wages Payable	1,420
Equipment	10,000		Common Stock	12,000
			Retained Earnings	6,400
	$23,980			$23,980

During August, the following summary transactions werecompleted.

Aug.	1	Paid $400 cash for advertising in local newspapers. Advertisingflyers will be included with newspapers delivered during August andSeptember.
	3	Paid August rent $380.
	5	Received $1,200 cash from customers in payment of account.
	10	Paid $3,120 for salaries due employees, of which $1,700 is forAugust and $1,420 is for July salaries payable.
	12	Received $2,800 cash for services performed in August.
	15	Purchased store equipment on account $2,000.
	20	Paid creditors $2,000 of accounts payable due.
	22	Purchased supplies on account $800.
	25	Paid $2,900 cash for employees’ salaries.
	27	Billed customers $3,760 for services performed.
	29	Received $780 from customers for services to be performed in thefuture.

Instructions:

Use 2017 as the year for this problem.
1	To print this page, right click anywhere on the screen you wantto print and click on Print.
2	Use the Entries menu to journalize the August entries. Theaccount balances shown at the beginning of the problem have beenjournalized and posted.
3	Click on New for each transaction.
4	Enter the correct transaction date and year given in theproblem.
5	These are considered Standard entries to be recorded in theGeneral Journal (chosen by default).
6	Click on the Save icon to save the transaction.
7	Use the Reports menu to display/print and review your entries.To print a report, right click anywhere on the screen and click onPrint (online version) or use the print icon (CD version).
8	If you need to make changes return to the Entries menu. Get theentry by the number of the transaction. Make your correction andSave the entry.
9	Use the Post menu to post the journal entries after all of thetransactions are recorded.
10	If you need to make changes to an entry once it has been posted,use the Entries menu to get the entry, click on the Void icon, thenenter the transaction with a new entry and save and post thatentry.
11	Use the Reports menu to access/print the Trial Balance. Reviewthe accounts for reasonableness. If changes are necessary see steps8 and 9 above.
12	Use the Entries menu to record the following adjusting entries.Check the box next to Adjusting Entries. A count shows supplies on hand of $960. Accrued but unpaid employees’ salaries are $1,540. Depreciation on equipment for the month is $320. Services were performed to satisfy $800 of unearned servicerevenue. One month’s worth of advertising services has been received. One month of interest revenue related to the $4,000 notereceivable has accrued. The 4-month note has a 6% annual interestrate. (Hint: Use the formula from Illustration 4-18 tocompute interest.)
13	Use the Reports menu to display/print the entries.
14	Use the Post menu to post the adjusting entries.
15	Use the Reports menu to access/print the Adjusted Trial balance,Income Statement, Retained Earnings Statement, and the BalanceSheet. To print a report, right click anywhere on the screen andclick on Print (online version) or use the print icon (CDversion).
16	Use the Close menu to close the books. Click on Continue whenrequested.
17	To display/print the closing entries, click on System ClosingEntries.
18	To display/print the Post Closing Trial Balance use the Reportsmenu.
19	To close a page click on the X in the upper right corner of thepage.

Hint: Cash balance is $2,020; Trial Balance totals are $30,700;Adjusted Trial Balance totals are $32,580; and Net Loss is$530.