Question

Comprehensive Accounting Cycle Review 5-02 (Part Level Submission) On November 1, 2022, Marin had the following account balances. The company uses the perpetual inventory method. Cash Accounts Receivable Supplies Equipment Debit $27,000 6,720 2,580 75,000 $111,300 Accumulated Depreciation-Equipment Accounts Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Credit $3,000 10,200 12,000 5,100 60,000 21,000 $111,300 Retained Earnings During November, the following summary transactions were completed. Nov. 8 Paid $10,650 for salaries due employees, of which $5,550 is for November and $5,100 is for October. 10 Received $5,700 cash from customers in payment of account. 11 Purchased merchandise on account from Dimas Discount Supply for $24,000, terms 2/10, n/30. 12 Sold merchandise on account for $16,500, terms 2/10, n/30. The cost of the merchandise sold was $12,000. 15 Received credit from Dimas Discount Supply for merchandise returned $900. 19 Received collections in full, less discounts, from customers billed on sales of $16,500 on November 12. 20 Paid Dimas Discount Supply in full, less discount. 22 Received $6,900 cash for services performed in November. 25 Purchased equipment on account $15,000. 27 Purchased supplies on account $5,100. Paid creditors $9,000 of accounts payable due. Paid November rent $1,125. 29 Paid salaries $3,900. 29 Performed services on account and billed customers $2,100 for those services. 29 Received $2,025 from customers for services to be performed in the future. 29

Answer 1

(1) adjusting enteries are prepared at the year end to give effect to various year end transactions like depreciation, prepaid adjustments etc.

we will journalize the transactions given

date	account name	debit	credit
Nov. 30	supplies expense	$2,880
	supplies		$2,880
Nov. 30	salaries and wages expense	$1,500
	salary and wages payable		$1,500
explanation	[ to record accrued salary as it is a liability it will be shown as payable]
Nov. 30	depreciation expense	$750
	accumulated depreciation-equipment		$750
explanation	[ depreciation is an expense also it reduces the value of equipment so it will be credited to accumulated depreciation. accumulated depreciation is a contra asset which is reduced from equipment on balance sheet]
Nov. 30	unearned service revenue	$12,075
	service revenue		$12,075
	[12000+2025-1950= $12075 worth of service has been performed so it will be recognized as an income]

¹supplies on hand at year end = beginning supply+ purchase-used

4800 = 2580+5100-used

used = 2580+5100-4800

=2880 so will expense 2880$ as supplies used.

Now, we will post it to ledgers

supplies expense
11/30	$2,880
supplies
11/1	$2580	$2,880	11/30
11/27	$5100
30/11 balance [5100+2580-2880]	$4800
salaries expense
11/8	5550
11/29	3900
11/30	1500
salaries and wages payable
11/8	5100	5100	11/1
		1500	11/30
		$1500	end balance
unearned service revenue
11/30	$12,075	12000	11/1
		2025	11/29
		$1950	end balance
			[12000+2025-12075]
service revenue
		6900	11/22
		2100	11/29
		12,075	11/30