Refer to the data for Alou Equipment Repair Corp. in P4-8A. Assume that Alou closes its books monthly.
In P4-8A
On October 31, 2012, the Alou Equipment Repair Corp.’s post-closing trial balance was as follows. The company adjusts its accounts monthly.
During November, the following transactions were completed:
Nov. 9 Paid $2,200 to employees for salaries due, of which $1,200 is for November salaries 12 payable and $1,000 for October.
13 Issued common shares for $5,000.
19 Received $2,400 cash from customers in payment of accounts.
20 Received $11,400 cash for services performed in November.
21 Purchased supplies on account, $2,600. Paid creditors $4,600 of accounts payable due.
23 Paid November rent, $600.
23 Paid salaries, $2,400.
27 Performed services on account, $3,800.
28 Declared and paid dividends, $500.
30 Received $1,100 from customers for services to be provided in the future.
Adjustment data for the month:
1. Supplies on
2. Accrued salaries payable are $1,000.
3. The equipment has an estimated useful life of five years.
4. Unearned revenue of $800 was earned during the month.
5. Income tax payable is estimated to be $1,200.
Instructions
(a) Prepare the closing journal entries.
(b) Post the closing entries to the T accounts prepared in P4-8A.
(c) Prepare a post-closing trial balance at November 30.
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