On August 1, 2022, the following were the account balances of 

Bramble Repair Services.

Debit Credit
Cash $7,490 Accumulated Depreci 740
Accounts Receivable 3,610 Accounts Payable 2,850
Notes Receivable 5,000 Unearned Service Re 1,560
Supplies 1,280 Salaries and Wages P 1,760
Equipment 12,400 Common stock 14,900
Retained Earnings 7,970
29,780 29,780
$29,780 29780
During August, the following summary transactions were completed.

Aug. 1 500 Paid $500 cash for advertising in local newspapers. Advertising flyers will be included with new
3 470 Paid August rent $470.
5 1490 Received $1,490 cash from customers in payment of account.
10 3870 Paid $3,870 for salaries due employees, of which $2,110 is for August and $1,760 is for July sa
12 3470 Received $3,470 cash for services performed in August.
15 2480 Purchased store equipment on account $2,480.
20 2480 Paid creditors $2,480 of accounts payable due.
22 990 Purchased supplies on account $990.
25 3600 Paid $3,600 cash for employees’ salaries.
27 4660 Billed customers $4,660 for services performed.
29 970 Received $970 from customers for services to be performed in the future.

Adjustment data:

1 1190 A count shows supplies on hand of $1,190.

2 1910 Accrued but unpaid employees’ salaries are $1,910.
3 400 Depreciation on equipment for the month is $400.
4 990 Services were performed to satisfy $990 of unearned service revenue.
5 250 One month’s worth of advertising services has been received.
6 25 One month of interest revenue related to the $5,000 note receivable has accrued. The 4-mon

Bramble’s chart of accounts includes Prepaid Advertising, Interest Receivable, Service Revenue, Interest Revenue, Advertising

a) Enter the August 1 balances in the ledger accounts. t accounts

cash
date account titles and explanations debit credit date
1-Aug prepaid advertising 500 1-Aug
cash 500 5-Aug
3-Aug rent expense 470 12-Aug
cash 470 29-Aug
5-Aug cash 1490
accounts receivable 1490
10-Aug salaries expense 2110
salaries payable 1760 $2,500
 cash 3870 salaries and wages payable
12-Aug cash 3470 date
service revenue 3470 10-Aug
15-Aug equipment 2480
accounts payable 2480
20-Aug accounts payable 2480
cash 2480
22-Aug supplies 990
accounts payable 990 interest receivable
25-Aug salaries and wages expense 3600 date
cash 3600 30-Aug
27-Aug accounts receivable 4660
service revenue 4660
29-Aug cash 970
unearned service revenue 970

adjusting entries retained earnings

account titles and explanations debit credit date
1 supplies expense 1,080 31-Aug
supplies 1,080
2 salaries and wages exp 1910
salaries and wages payable 1910
3 depreciation exp 400
accumulated depreciation 400
4 unearned service revenue 990
service revenue 990
5 advertising exp 250 equipment
prepaid advertising 250 date
6 interest receivable 25 1-Aug
interest revenue 25 15-Aug

closing entries
ret earn debit credit
income su 31-Aug service revenue 9120
service rev interest revenue 25
int rev income summary 9145
dep exp 31-Aug income summary 9820 interest revenue
supp exp salaries and wages epxense 7620 date
sal wag exp rent expense 470 31-Aug
rent exp depreciation expense 400
adv exp advertising expense 250
supplies expense 1080
31-Aug retained earnings 675
income summary 675

supplies expense
date
30-Aug
 cash
accounts receivable
notes receivable
supplies
equipment
accumulated depreciation
accounts payable
unearned service revenue
salaries and wages payable
common stock
retained earnings
flyers will be included with newspapers delivered during August and September.

ugust and $1,760 is for July salaries payable.

vable has accrued. The 4-month note has a 6% annual interest rate.

Interest Revenue, Advertising Expense, Depreciation Expense, Supplies Expense, Salaries and Wages Expense, and Rent Expense.

t accounts
accounts payable accounts receivable
debit date credit date debit date credit date debit date
$7,490 1-Aug 500 20-Aug 2480 1-Aug 2,850 1-Aug 3,610 5-Aug
1490 3-Aug 470 15-Aug 2480 27-Aug 4660
3470 10-Aug 3870 22-Aug 990
970 20-Aug 2480
25-Aug 3600

$13,420 10920 2480 6,320 8,270

3,840 6,780
salaries and wages payable notes receivable unearned service revenue
debit date credit date debit date credit date debit date
1760 1-Aug 1,760 1-Aug 5,000 30-Aug 990 1-Aug
30-Aug 1910 29-Aug

1760 3,670 5,000 990

1,910 1,540
interest receivable common stock supplies
debit date credit date debit date credit date debit date
25 1-Aug 14,900 1-Aug 1,280 30-Aug
22-Aug 990

25 14,900 2,270
1,190
retained earnings prepaid advertising income summary
debit date credit date debit date credit date debit date
675 1-Aug 7,970 1-Aug 500 30-Aug 250 31-Aug 9820 31-Aug
31-Aug

675 7,970 500 250 9820

7,295 250
equipment service revenue accumulated depreciation
debit date credit date debit date credit date debit date
12,400 31-Aug 9120 12-Aug 3470 1-Aug
2480 27-Aug 4660 30-Aug
30-Aug 990

14,880 9120

interest revenue depreciation expense rent expense

debit date credit date debit date credit date debit date
25 30-Aug 25 30-Aug 400 31-Aug 400 3-Aug 470 31-Aug

25 400 470

supplies expense advertising expense salaries and wages expense

debit date credit date debit date credit date debit date
1,080 31-Aug 1080 30-Aug 250 31-Aug 250 10-Aug 2110 31-Aug
25-Aug 3600
30-Aug 1910

1,080 250 7620

ted depreciation

service revenue
nd wages payable

ense, and Rent Expense.

trial balance

credit date debit date credit 1 cash

1490 2 accounts receivable
3 notes receivable
4 supplies
5 prepaid advertising
6 equipment
7 accumulated depreciation-equipment
1490 8 accounts payable
9 unearned service revenue
 10 salaries and wages payable
credit date debit date credit 11 common sstock
1,560 12 retained earnings
970 13 service revenue
14 salaries and wages expense
15 rent expense
2,530

credit date debit date credit

1,080

1,080

credit date debit date credit revenues

675 service revenue
9145 interest revenue
total revenues
expenses
salaries and wages expense
rent expense
9820 depreciation expense
advertising expense
supplies expense
credit date debit date credit total expenses
740
400

retained earnings statemen

beg bal ret earn

1140 less
end bal ret earn

credit date debit date credit

470

1 cash
2 accounts receivable
credit date debit date credit 3 prepaid advertising
7620 4 supplies
5 notes receivable
6 interest receivable
7 equipment
8 accumulated dep
9 accounts pay
10 salaries and wages pay
11 unearned service rev
12 common stock
13 retained earnings
 trial balance adjusted trial balance
debit credit debit
2500 1 cash $2,500
6780 2 accounts receivable 6,780
5000 3 notes receivable 5,000
2270 4 interest receivable 25
500 5 supplies 1,190
14880 6 prepaid advertising 250
iation-equipment 740 7 equipment 14,880
3840 8 accum dep
2530 9 accounts paayable
 0 10 unearned service revenue
14900 11 salaries and wages payable
7970 12 common stock
8130 13 retained earnings
5710 14 service revenue
470 15 interest revenue
38110 38110 16 depreciation expense 400
17 supplies expense 1,080
18 salaries and wages expense 7620
19 rent exp 470
20 advertising expense 250
40445

income statement balance sheet

assets
9120 current assets
25 cash
total revenues 9145 accounts receivable
prepaid advertising
nd wages expense 7620 supplies
470 notes receivable
on expense 400 interest receivable
250 total current assets
1080 ppe
total expenses 9820 equip
net loss -675 less:accumdep-equip
totalppe
total assets
retained earnings statement
liabilities and stockholder's e
beg bal ret earn 7970 current liab
net loss -675 accounts payable
end bal ret earn 7295 salaries and wages payable
unearned service revenue
total liab
equity
common stock
retained earnings
total equity
total liab + equity
post-closing trial balance
debit credit
$2,500
6,780
 250
1,190
5,000
25
14,880
1140
3,840
nd wages pay 1,910
1,540
14,900
7,295
$30,625 30625
credit

1140
3,840
 1,540
1,910
14,900
7,970
9120
25

40445

balance sheet

2500
6780
250
1190
5000
25
15745

14880
1140
13740
total assets 29485

liabilities and stockholder's equity

3840
1910
1540
7290

14900
7295
22195
total liab + equity 29485