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T-Accounts, Adjusting & Closing Entries, Trial Balance and Financial Statements Exercise

by Ismail


Οn October 1, 20xx, Jason Dauphinais opened Dauphinais Appliance Serνice. During the month, he completed the following transactions for the company:
Oct. 1. Began business by depositing €5,000 in a bank account.
1. Paid the rent for a store for one month, €425.
1. Paid the premium on a one-year insurance policy, €480.
2. Purchased repair equipment from Fιtzgerald Company, €4,200. Terms were €600 down (cash) and €300 per month for one year. First payment is due November 1.
5. Purchased repair supplies from Deane Company on credit, €468.
8. Paid cash for an advertisement in a local newspaper, €60.
15. Received cash repair revenue for the first half of the month, €400.
21. Paid Deane Company οn account, €225.
31. Received cash repair revenue for the second half of October, €975.
31. Withdrew cash for personal expenses, €300.

1. Prepare entries in T accounts form to record the October transactions.
2. Using the fol1owing information, record adjusting entries (use T accounts):
a. One month's insurance has expired.
b. The remaining inventory of unused repair supplies is €169.
c. The estimated depreciation on repair equipment is €70.
3. From the T accounts in the ledger, prepare an adjusted trial balance: (Note: Normally a trial balance is prepared before adjustments but is omitted here to save time.)
4. From the adjusted trial balance, prepare an income statement, a statement of owner's equity, and a balance sheet for October ending date.
5. Prepare closing entries in T accounts.

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