Question

ACR52 on November 1, 2022, Ikonk, Inc. had the following account balances. The company uses the perpetual inventory method. Debit Credit Cash $ 9,000 Accumulated Depreciation- Accounts Receivable 2,240 Equipment $ 1.000 Supplies 860 Accounts Payable 3,400 Equipment 25.000 Uneared Service Revenue $37.100 Salaries and Wages Payable 1,700 Common Stock 20.000 Retained Earnings 7.000 $37.100 During November, the following summary transactions were completed. Nov. 8 Paid $3.550 for salaries due employees, of which $1,850 is for November and $1,700 is for October 10 Received $1,900 cash from customers in payment of account 11. Purchased merchandise on account from Dimas Discount Supply for $8,000, terms 2/10 n/30. 12 Sold merchandise on account for $5.500, terms 2/10 n/30. The cost of the mer chandise sold was $4,000. 15 Received credit from Dimas Discount Supply for merchandise returned $300 19 Received collections in full, less discounts, from customers billed on sales of $5,500 on November 12. 20 Paid Dimas Discount Supply in full, less discount. Received $2,300 cash for services performed in November 25 Purchased equipment on account $5,000. 27 Purchased supplies on account $1,700. 28 Paid creditors $3,000 of accounts payable due 29 Paid November rent $375. 29 Paid salaries $1,300. 29 Performed services on account and billed customers $700 for those services. 29 Received $675 from customers for services to be performed in the future. Adjustment data: 1. Supplies on hand are valued at $1,600. 2. Accrued salaries payable are $500. 3. Depreciation for the month is $250. 4. $650 of services related to the unearned service revenue has not been performed by month-end. Instructions Enter the November 1 balances in ledger T-accounts. . Journalize the November transactions. Bere M oto c. Post to the ledger accounts. You will need to add some accounts. T- Account 5-51 7 Adjustment d. Journalize and post adjusting entries. e. Prepare an adjusted trial balance at November 30. 1. Prepare a multiple-step income statement and a retained earnings statement for November and a classified balance sheet at November 30. & Journalize and post closing entries. e. Tot. adj. trial bal. 1 Tot. assets $49,025 $38,430

the instructions are from A to G

Answer 1

a., c. & d.:

Cash
Beg. bal.	9,000	Nov 8	3,550
Nov 10	1,900	20	7,546
19	5,390	28	3,000
22	2,300	29	375
29	675	29	1,300
End. bal.	3,494
Accounts Receivable
Beg. bal.	2,240	Nov 10	1,900
Nov 12	5,500	19	5,500
29	700
End. bal.	1,040
Merchandise Inventory
Beg. bal.	0	Nov 12	4,000
Nov 11	8,000	15	300
		20	154
End. bal.	3,546
Supplies
Beg. bal.	860	Adj. 1	960
Nov 27	1,700
End. bal.	1,600
Equipment
Beg. bal.	25,000
Nov 25	5,000
End. bal.	30,000
Accumulated Depreciation: Equipment
		Beg. bal.	1,000
		Adj. 3	250
		End. bal.	1,250
Accounts Payable
Nov 15	300	Beg. bal.	3,400
Nov 20	7,700	Nov 11	8,000
28	3,000	25	5,000
		27	1,700
		End. bal.	7,100
Unearned Service Revenue
Adj. 4	4,025	Beg. bal.	4,000
		Nov 29	675
		End. bal.	650
Salaries and Wages Payable
Nov 8	1,700	Beg. bal.	1,700
		Adj. 2	500
		End. bal.	500
Common Stock
		Beg. bal.	20,000
		End. bal.	20,000
Retained Earnings
		Beg. bal.	7,000
Sales Revenue
		Beg. bal.	0
		Nov 12	5,500
			5,500
Sales Discounts
Beg. bal.	0
Nov 19	110
	110
Service Revenue
		Beg. bal.	0
		Nov 22	2,300
		29	700
		Adj 4	4,025
			7,025
Cost of Goods Sold
Beg. bal.	0
Nov 12	4,000
End. bal.	4,000
Salaries and Wages Expense
Beg. bal.	0
Nov 8	1,850
29	1,300
Adj. 2	500
	3,650
Rent Expense
Beg. bal.	0
Nov 29	375
	375
Supplies Expense
Beg. bal.	0
Adj. 1	960
	960
Depreciation Expense
Beg. bal.	0
Adj 3	250
	250

b. In the books of IKonk Inc. :

Date	Account Titles	Debit	Credit
November 2022		$	$
8	Salaries and Wages Payable	1,700
	Salaries and Wages Expense	1,850
	Cash		3,550
10	Cash	1,900
	Accounts Receivable		1,900
11	Merchandise Inventory	8,000
	Accounts Payable		8,000
12	Accounts Receivable	5,500
	Sales		5,500
12	Cost of Goods Sold	4,000
	Merchandise Inventory		4,000
15	Accounts Payable	300
	Merchandise Inventory		300
19	Cash	5,390
	Sales Discounts	110
	Accounts Receivable		5,500
20	Accounts Payable	7,700
	Merchandise Inventory		154
	Cash		7,546
22	Cash	2,300
	Service Revenue		2,300
25	Equipment	5,000
	Accounts Payable		5,000
27	Supplies	1,700
	Accounts Payable		1,700
28	Accounts Payable	3,000
	Cash		3,000
29	Rent Expense	375
	Cash		375
29	Salaries Expense	1,300
	Cash		1,300
29	Accounts Receivable	700
	Service Revenue		700
29	Cash	675
	Unearned Service Revenue		675

d.

Adjustment	Account Titles	Debit	Credit
		$	$
1.	Supplies Expense	960
	Supplies		960
2.	Salaries and Wages Expense	500
	Salaries and Wages Payable		500
3.	Depreciation Expense	250
	Accumulated Depreciation : Equipment		250
4.	Unearned Service Revenue	4,025
	Service Revenue		4,025

e.

IKonk Inc. Adjusted Trial Balance November 30
Account Titles	Debit	Credit
	$	$
Cash	3,494
Accounts Receivable	1,040
Merchandise Inventory	3,546
Supplies	1,600
Equipment	30,000
Accumulated Depreciation: Equipment		1,250
Accounts Payable		7,100
Salaries and Wages Payable		500
Unearned Service Revenue		650
Common Stock		20,000
Retained Earnings		7,000
Service Revenue		7,025
Sales Revenue		5,500
Sales Discounts	110
Cost of Goods Sold	4,000
Salaries Expense	3,650
Supplies Expense	960
Rent Expense	375
Depreciation Expense	250
Totals	$ 49,025	$ 49,025