Accounting

Nov. 8 

Paid $1,150 for salaries due employees, of which $550 is for October salaries payable and $600 is for November. 

 10

Received $1,400 cash from customers in payment of account. 

 11 

Purchased merchandise on account from Midwest Wholesale Supply for $6,000, terms 2/10, n/30. 

 12 

Sold merchandise on account for $4,500, terms 2/10, n/30. The cost of the merchandise sold was $3,000. 

 15 

Received credit from Midwest Wholesale Supply for merchandise returned $200. 

 19 

Received collections in full, less discounts, from customers billed on sales of $4,500 on November 12. 

 20 

Paid Midwest Wholesale Supply in full, less discount.  (Don’t forget the return on the 15th.)

22 

Received $1,300 cash for services performed in November. 

 25 

Purchased equipment on account $3,000. 

 27 

Purchased supplies on account $1,300. 

 28 

Paid creditors $2,500 of accounts payable due. 

 29 

Paid November rent $300. 

 29 

Paid salaries $1,100. 

29 

Performed services on account and billed customers for services provided $1,900. 

 29 

Received $550 from customers for services to be provided in the future. 

1.

Supplies on hand are valued at $1,600.

2.

Accrued salaries payable as of 11/30 are $500.

3.

Depreciation for the month is $750.

4.

$650 of the unearned service revenue has not been earned by month end.

Print out the solution pages for the general ledger, journal and worksheet that follow and enter the following transactions. I suggest that you use a pencil.

a. Enter the November 1 balances in ledger accounts. Use T accounts provided on the next page.

b. Enter the November transactions in the general journal provided on the next page.

c. Post to the ledger accounts. You will need to add some accounts.

d. Prepare an unadjusted trial balance at November 30 and enter on the worksheet. Then complete the other worksheet columns. (See below.)

Worksheet requirement: Using your unadjusted trial balance above and the data for adjusting entries, prepare a 10 column worksheet similar to the one on page 196 in the chapter 4 appendix of your text.

e. Journalize and post adjusting entries.

f. Prepare a multi-step income statement and a retained earnings statement for November and a classified balance sheet at November 30. Use your own paper. (No formatted sheets are supplied as we did for the other items.)

g. Journalize and post closing entries.

Cash

Accounts Receivable

Supplies

Store Equipment

Accumulated Depreciation—

Store Equipment

Accounts Payable

Unearned

Service Revenue

Salaries Payable

Common Stock

Retained Earnings

Income Summary

Date

Account Titles

Debit

Credit

Date

Account Titles

Debit

Credit