Ask Question
6 September, 14:55

The following transactions occur in November.

November 1 Issue common stock in exchange for $11,800 cash.

November 2 Purchase equipment with a long-term note for $2,300 from Spartan Corporation.

November 4 Purchase supplies for $1,200 on account.

November 10 Provide services to customers on account for $7,800.

November 15 Pay creditors on account, $1,000.

November 20 Pay employees $1,800 for the first half of the month.

November 22 Provide services to customers for $9,800 cash.

November 24 Pay $920 on the note from Spartan Corporation.

November 26 Collect $5,800 on account from customers.

November 28 Pay $1,000 to the local utility company for November gas and electricity.

November 30 Pay $3,800 rent for November.

Required:

1. Record each transaction.

2. Post each transaction to appropriate t-account.

+3
Answers (1)
  1. 6 September, 14:57
    0
    Required 1.

    November 1

    Cash $11,800 (debit)

    Common Shares $11,800 (credit)

    November 2

    Equipment $2,300 (debit)

    Note Payable $2,300 (credit)

    November 4

    Supplies $1,200 (debit)

    Trade Payable $1,200 (credit)

    November 10

    Trade Receivable $7,800 (debit)

    Revenue $7,800 (credit)

    November 15

    Trade Payable $1,000 (debit)

    Cash $1,000 (credit)

    November 20

    Salaries and Wages $1,800 (debit)

    Cash $1,800 (credit)

    November 22

    Cash $9,800 (debit)

    Revenue $9,800 (credit)

    November 24

    Note Payable $920 (debit)

    Cash $920 (credit)

    November 26

    Cash $5,800 (debit)

    Trade Receivable $5,800 (credit)

    November 28

    Utilities $1,000 (debit)

    Cash $1,000 (credit)

    November 30

    Rent $3,800 (debit)

    Cash $3,800 (credit)

    Required 2.

    T - Account Balances

    Cash = $18,800 (debit)

    Common Shares = $11,800 (credit)

    Equipment = $2,300 (debit)

    Note Payable = $1,380 (credit)

    Supplies = $1,200 (debit)

    Trade Payable = $200 (credit)

    Trade Receivable = $2,000 (debit)

    Revenue = $17,600 (credit)

    Salaries and Wages = $1,800 (debit)

    Utilities = $1,000 (debit)

    Rent = $3,800 (debit)

    Explanation:

    T - Account Balance Calculations:

    Cash = $11,800 - $1,000 - $1,800 + $9,800 - $920 + $5,800 - $1,000 - $3,800 = $18,800 (debit)

    Common Shares = $11,800 (credit)

    Equipment = $2,300 (debit)

    Note Payable $2,300 - $920 = $1,380 (credit)

    Supplies = $1,200 (debit)

    Trade Payable $1,200 - $1,000 = $200 (credit)

    Trade Receivable $7,800 - $5,800 = $2,000 (debit)

    Revenue $7,800 + $9,800 = $17,600 (credit)

    Salaries and Wages = $1,800 (debit)

    Utilities = $1,000 (debit)

    Rent = $3,800 (debit)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The following transactions occur in November. November 1 Issue common stock in exchange for $11,800 cash. November 2 Purchase equipment ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers