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Complete the steps in the measurement of external transactions.

The following information applies to the questions displayed below.
Buckeye Incorporated had the following balances at the beginning of November.
BUCKEYE INCORPORATED
Trial Balance
November 1
Accounts Debits Credits
Cash $1,200
Accounts Receivable 400
Supplies 500
Equipment 7,400
Accounts Payable $1,000
Notes Payable 2,000
Common Stock 5,000
Retained Earnings 1,500
Totals $9,500 $9,500
The following transactions occur in November.
November 1 Issue common stock in exchange for $11,000 cash.
November 2 Purchase equipment with a long-term note for $1,500 from Spartan Corporation.
November 4 Purchase supplies for $1,100 on account.
November 10 Provide services to customers on account for $7,000.
November 15 Pay creditors on account, $1,200.
November 20 Pay employees $1,000 for the first half of the month.
November 22 Provide services to customers for $9,000 cash.
November 24 Pay $600 on the note from Spartan Corporation.
November 26 Collect $5,000 on account from customers.
November 28 Pay $1,200 to the local utility company for November gas and electricity.
November 30 Pay $3,000 rent for November.
Post each transaction to the appropriate T-accounts and calculate the balance of each account at November 30.
Cash Accounts Receivable
Beg, Bal. Beg. Bal.
November 1 12,800
November 22 10,800
November 26 5,000
End. Bal.
End. Bal.
Supplies Equipment
Beg. Bal. Beg Bal
End. Bal. End. Bal.

User Dorvalla
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1 Answer

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Answer:

November 1 Issue common stock in exchange for $11,000 cash.

Dr Cash 11,000

Cr Common stock 11,000

November 2 Purchase equipment with a long-term note for $1,500 from Spartan Corporation.

Dr Equipment 1,500

Cr Notes payable 1,500

November 4 Purchase supplies for $1,100 on account.

Dr Supplies 1,100

Cr Accounts payable 1,100

November 10 Provide services to customers on account for $7,000.

Dr Accounts receivable 7,000

Cr Service revenue 7,000

November 15 Pay creditors on account, $1,200.

Dr Accounts payable 1,200

Cr cash 1,200

November 20 Pay employees $1,000 for the first half of the month.

Dr Wages expense 1,000

Cr cash 1,000

November 22 Provide services to customers for $9,000 cash.

Dr Cash 9,000

Cr Service revenue 9,000

November 24 Pay $600 on the note from Spartan Corporation.

Dr Notes payable 600

Cr Cash 600

November 26 Collect $5,000 on account from customers.

Dr Cash 5,000

Cr Accounts receivable 5,000

November 28 Pay $1,200 to the local utility company for November gas and electricity.

Dr Utilities expense 1,200

Cr Cash 1,200

November 30 Pay $3,000 rent for November.

Dr Rent expense 3,000

Cr Cash 3,000

Cash Common stock

debit credit debit credit

1,200 5,000

11,000 11,000

1,200 16,000

1,000

9,000

600

5,000

1,200

3,000

19,200

Accounts receivable Supplies

debit credit debit credit

400 500

7,000 1,100

5,000 1,600

2,400

Equipment Accounts Payable

debit credit debit credit

7,400 1,000

1,500 1,100

8,900 1,200

900

Notes Payable Service revenue

debit credit debit credit

2,000 7,000

1,500 9,000

600 16,000

2,900 6,000 closed

Retained Earnings Wages expense

debit credit debit credit

1,500 1,000

10,800 closed 1,000

12,300

Utilities expense Rent expense

debit credit debit credit

1,200 3,000

closed 1,200 closed 3,000

net income for the month = $16,000 - $5,200 = $10,800, so retained earnings should increase by $10,800

User Magsafe
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