Adjusting the Accounts

On Nobember 1, 2019, the account balances of Hamm Equipment Repair were as follows
During November, the following summary transactions were completed.
Nov. 8Paid $1,700 for salaries due employees of which $700 is for October salaries.
10Received $3,620 cash from customers on account.
12Received $3,100 cash for services performed in November.
15Purchased equipment on account $2,000
17Purchased supplies on account $700
20Paid creditors on account $2,700
22Paid November rent $400
25Paid salaries $1,700
27Performed services on account and billed customers for these services $2,200
29Received $600 from customers for further service
Adjustment data consists of
  1. Supplies on had $1,400
  2. Accrued salaries payable $350
  3. Depreciation for the month is $200
  4. Services related to unearned service revenue of $1,220 were performed


  1. Enter the November 1 balances in the ledger accounts
  2. Journalize the November transactions.
  3. Post to the ledger accounts. Use J1 for the posting reference. Use the following additional accounts: No. 407 Service Revenue, No. 615 Depreciation Expense, No. 631 Supplies Expense, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.
  4. Prepare a trial balance at November 30.
  5. Journalize and post adjusting entries.
  6. Prepare an adjusted trial balance.
  7. Prepare an income statement and an owner’s equity statement for November and a balance sheet at November 30.


Hamm Equipment Repair
(General Ledger)


Hamm Equipment Repair
General Journal


Hamm Equipment Repair
(General Ledger)


Hamm Equipment Repair
Trial Balance
November 30, 2019


Hamm Equipment Repair
Adjusting Journal


Hamm Equipment Repair
(General Ledger)


Hamm Equipment Repair
Adjusted Trial Balance
November 30, 2019


Hamm Equipment Repair
Income Statement
For the Month Ended November 30, 2019
Hamm Equipment Repair
Owner's Equity Statement
For the Month Ended November 30, 2019

Hamm Equipment Repair
Balance Sheet
November 30, 2019
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