Question

Please help me with the final statements:

Use the following information to demonstrate your understanding of the accounting cycle. Consider all of the steps in the cycle and provide all entries/forms/reports/statements in the cycle. On November 1, 2022, IKonk, Inc. had the following account balances. The company uses the perpetual inventory method. Debit Credit Cash Accumulated Depreciation- 9,000 Equipment 1,000 Accounts 2,240 Receivable Supplies 860 Accounts Payable 3,400 Equipment 25,000 Unearned Service Revenue 4,000 $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. Paid $3,550 for salaries due employees, of which $1,850 is for November and 8 $1,700 is for October. Received $1,900 cash from customers in payment of account. Purchased merchandise on account from Dimas Discount Supply for $8,000, terms 2010, n/30. - 12 Sold merchandise on aceount-for $5,500, terms 2/10, n/30. The cost of the merchandise sold was $4,000. Received credit from Dimas Discount Supply for merchandise returned $300. ng 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. - 251 Purchased equipment on account $5,000. _27/ Purchased supplies on account $1,700. 2280 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. V290 Received $675 from customers for services to be performed in the future. M5v 22/

Answer 1

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

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

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

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

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

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