Question

Instruction F and G please!!!

ACRS 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- 2.240 Accounts Receivable $ 1.000 Equipment Supplies 850 Accounts Payable 3.400 25.000 Equipment 4,000 Unearned Service Revenue $37.100 Salaries and Wages Payable 1.700 Common Stock 20,000 Retained Earning 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 /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 22 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 5700 for those services 29 Received 5675 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 B. Journalize the November transactions. Bere Post to the ledger accounts. You will need to add some accounts. T- Account d. Journalize and post adjusting entries. T austment e. Prepare an adjusted trial balance at November 30. f. Prepare a multiple-step income statement and a retained earnings statement for November and a classified balance sheet at November 30. g. Journalize and post closing entries. e. Tot. adj. trial bal. . Tot. assets

Answer 1

IKonk Inc Income Statement For the Month Ended Nov 30, 2022 Sales Revenue 5,500 Sales Discounts (110) Sales Revenue, Net 5,390 Service Revenue 7,025 Total Revenues 12,415 Cost of Goods Sold 4,000 Gross Profit 8,415 Expenses Salaries and Wages expense 3,650 375 Rent expense Depreciation expense 250 Supplies expense 960 Total Operating expenses 5,235 Net Income 3,180 Statement of Retained Earnings For the Month Ended Nov 30, 2022 Balance at Nov 1, 2022 7,000 Net Income 3,180 Balance at Nov 30, 2022 10,180

Konk Inc Balance Sheet As of Nov 30, 2022 Liabilities & Stockholders Equity Current Liabilities 3,494 Accounts Payable 1,040 Unearned Service Revenue 3,546 Salaries and Wages Payable Assets Current Assets Cash 7,100 Accounts Receivable 650 Inventory 500 Supplies 1,600 9,680 Total Current Liabilities Total Current Assets 8,250 |Stockholders Equity Non-Current Assets 30,000 Common Stock (1,250) Retained earnings 28,750 Total Stockholders Equity Equipment 20,000 Accumulated Depreciation 10,180 Total Non-Current Assets 30,180 38,430 Total Liabilities & Stockholders Equity Total Assets 38,430

Closing entries $ 7,025 30-Nov Service Revenue Sales Revenue 5,500 $ 12,525 Income Summary $ 9,345 30-Nov Income Summary Sales Discounts 110 $4,000 Cost of Goods Sold $ 3,650 Salaries and Wages expense $ Rent expense 375 $ Depreciation expense 250 $ Supplies expense 960 $3,180 30-Nov Income Summary Retained Earnings $ 3,180

IKonk Inc T Accounts Date Date Date Date Credit Credit Debit Credit Debit Credit Debit Debit Date Date Date Date Cash Accounts Receivable Supplies Inventory $ $ 9,000 8-Nov $3,550 Op bal 10-Nov 1,900 Op bal Op bal Op bal 27-Nov $1,700 Adj 2,240 860 20-Nov 7,546 12-Nov 4,000 12-Nov $ 5,500 19-Nov $ 5,500 11-Nov 8,000 $ 10-Nov 1,900 960 19-Nov 5,390 28-Nov 3,000 29-Nov $ 15-Nov $ 300 20-Nov $ 700 29-Nov $ 22-Nov 2,300 375 154 29-Nov 1,300 29-Nov $ 675 $ 3,546 $ 1,040 $ 1,600 $3,494 Bal. Bal. Bal. Bal. Accumulated Depreciation-Equipment Op bal Adj Accounts Payable Unearned Service Revenue Equipment Op bal Op bal 25-Nov $ 5,000 1,000 $4,000 $25,000 Op bal 3,400 29-Nov $ 15-Nov $ 11-Nov 8,000 250 300 675 $ 4,025 25-Nov 5,000 Adj 20-Nov 7,700 28-Nov 3,000 27-Nov 1,700 $ 1,250 Bal. $ 7,100 $30,000 Bal. Bal. $ Bal. 650 Salaries and Wages Payable 8-Nov $1,700 Op bal Adj Retained Earnings Op bal Income Summary Common Stock $ 7,000 $ 1,700 $20,000 1-Aug 30-Nov $12,525 Op bal 30-Nov 30-Nov 3,180 500 30-Nov 3,180 Bal. Bal. Bal. Bal. $ $20,000 $10,180 $ 500 Salaries and Wages expense Service Revenue Rent expense 8-Nov $ 1,850 29-Nov $ 22-Nov 2,300 375 29-Nov $ 29-Nov $1,300 700 30-Nov 7,025 Adj $ 4,025 Adj $ 30-Nov 3,650 30-Nov $ 500 375 Bal. $ $ Bal. Bal. Sales Revenue Cost of Goods Sold Sales Discounts 30-Nov $ 5,500 12-Nov 5,500 30-Nov 4,000 19-Nov $ 30-Nov $ 12-Nov 4.000 110 110 Bal. $ $ Bal. Bal. Supplies expense Depreciation expense 250 Adj $ 30-Nov $ 30-Nov $ Adj 250 960 960 $ $ Bal. Bal.
Workings

IKonk Inc Journal entries Account Debit Credit Calculation Date 8-Nov Salaries and Wages expense $ 1,850 Salaries and Wages Payable $ 1,700 $ Cash 3,550 $ 10-Nov Cash 1,900 $ Accounts Receivable 1,900 $ 11-Nov Inventory 8,000 Accounts Payable $ 8,000 $ 12-Nov Accounts Receivable 5,500 $ 5,500 Sales Revenue $ Cost of Goods Sold 4,000 $ Inventory 4,000 15-Nov Accounts Payable $ 300 Inventory 300 $ 19-Nov Cash 5,390 $ Sales Discounts -5,500*2% 110 $ Accounts Receivable 5,500 20-Nov Accounts Payable $ -8,000-300 7,700 $ Cash 7,546 Inventory 154 7,700*2% $ 22-Nov Cash 2,300 $ Service Revenue 2,300 $ 25-Nov Equipment 5,000 $ 5,000 Accounts Payable $ 27-Nov Supplies 1,700 Accounts Payable $ 1,700 28-Nov Accounts Payable $ 3,000 $ Cash 3,000 $ 29-Nov Rent expense 375 $ Cash 375 29-Nov Salaries and Wages expense $ 1,300 $ Cash 1,300 $ 29-Nov Accounts Receivable 700 $ Service Revenue 700 $ 29-Nov Cash 675 $ Unearned Service Revenue 675 Adjusting entries - 2,560-1,600 30-Nov Supplies expense $ 960 $ Supplies Unadj TB is 2,560 960 30-Nov Salaries and Wages expense 500 Salaries and Wages Payable $ 500 $ 30-Nov Depreciation expense 250 Accumulated Depreciation-Equipment $ 250 $ 30-Nov Unearned Service Revenue 4,675-650 4,025 $ Unadj TB is 4,675 Service Revenue 4,025

Unadjusted TB Adjusted TB IKonk Inc Opening TB Account Names Debit Credit Debit Credit Debit Credit Cash 3,494 9,000 3,494 Accounts Receivable 1,040 2,240 1,040 Inventory 3,546 3,546 Supplies 860 2,560 1,600 Equipment 25,000 30,000 30,000 Accumulated Depreciation-Equipment 1,000 1,000 1,250 Accounts Payable 7,100 7,100 3,400 Unearned Service Revenue 4,675 4,000 650 Salaries and Wages Payable 1,700 500 Common Stock 20,000 20,000 20,000 Retained Earnings 7,000 7,000 7,000 Service Revenue 3,000 7,025 Sales Revenue 5,500 5,500 Sales Discounts 110 110 Cost of Goods Sold 4,000 4,000 Salaries and Wages expense 3,150 3,650 Rent expense 375 375 Depreciation expense 250 Supplies expense 960 Totals 37,100 37,100 48,275 48,275 49,025 49,025