AC1220 ACCOUNTING I Lab 2.2 AC1220 Lab 2.2 Introduction Jake’s Computer Repair Service was profitable in February 20x1 and continued to operate in March 20x1. The ending balances for assets, liabilities, and the capital account of Jake’s Computer Repair Service on February 28, 20x1 are listed here. These account balances are also the beginning balances for March 20x1. Account Balance Debit Credit Cash $7,760 Accounts Receivable $1,630 Supplies $260 Prepaid Advertising $1,000 Equipment $6,200 Accounts Payable $490 Wages Payable $30 Interest Payable $120 Note Payable $10,000 Unearned Revenue $120 Capital, Jones $6,090 Total $16,850 $16,850 The following transactions occurred during March 20x1: a. March 1, 20x1. Purchased supplies (on account): $640 b. March 4, 20x1. Service revenues for the first week of March: $1,420 (cash) c. March 18, 20x1. Received cash from customers on accounts receivable: $1,600 d. March 25, 20x1. Paid interest expense on note payable: $120 e. March 31, 20x1. Service revenues for the rest of March: $5,680 ($5,000 cash, $680 on account) f. March 31, 20x1. Paid rent: $500 g. March 31, 20x1. The cash payment for wages totaled $1,100. The journal entry includes debit to the wages payable account. h. March 31, 20x1. Jake withdrew $2,000 in cash from the business for personal use. Requirement 1 Journalize the transactions occurring during March, 20x1. The first transaction has been journalized and posted to the related ledger account. DATE REF DEBIT CREDIT 3/1/11 Supplies $640 Accounts Payable a $640 To record purchase of supplies a 3/4/x1 b b 3/18/x1 c c 3/25/x1 d d DATE REF DEBIT CREDIT 3/31/x1 e e e 3/31/x1 f f 3/31/x1 g g g 3/31/x1 h h Requirement 2 Post the journal entries made for March 31, 20x1, to the appropriate T-accounts. Use the journal entries for March 31 made in Requirement 2. All other entries have been posted. CASH ACCOUNTS RECEIVABLE Bal. $7,760 Bal. $1,630 SUPPLIES PREPAID ADVERTISING Bal. $260 Bal. $1,000 Mar 1 $640 EQUIPMENT Bal. $6,200 ACCOUNTS PAYABLE WAGES PAYABLE Bal. $490 Bal. $30 Mar 1 $640 INTEREST PAYABLE UNEARNED REVENUE Mar 25 $120 Bal. $120 Bal. 120 NOTES PAYBALE Bal. $10,000 CAPITAL, JONES DRAWINGS, JONES Bal. $6,090 SERVICE REVENUES WAGES EXPENSE RENT EXPENSE INTEREST EXPENSE Requirement 3 Use the following unadjusted trial balance for Jake’s Computer Repair Service as on March 31, 20x1, to check the ending balances you computed for Requirement 2 above. Account Unadjusted Balance Debit Credit Cash $12,060 Accounts Receivable $710 Supplies $900 Prepaid Advertising $1,.