Question

Problem 2-8B Complete the steps in the measurement of external transactions (L02-4, 2-5, 2-6) The following information applies to the questions displayed below.) Buckeye Incorporated had the following balances at the beginning of November BUCKEYE INCORPORATED Trial Balance November 1 Accounts Debits Credits Cash $1,200 Accounts Receivable 400 Supplies 500 Equipment 7,400 Accounts Payable $1,000 Notes Payable 2,000 Common Stock 5,000 Retained Earnings 1,500 Totals $9,500 $9,500 The following transactions occur in November November 1 Issue common stock in exchange for $11,000 cash. November 2 Purchase equipment with a long-term note for $1,500 from Spartan Corporation. November 4 Purchase supplies for $1,100 on account. November 10 Provide services to customers on account for $7,000. November 15 Pay creditors on account, $1,200. November 20 Pay employees $1,000 for the first half of the month. November 22 Provide services to customers for $9,000 cash. November 24 Pay $600 on the note from Spartan Corporation. November 26 Collect $5,000 on account from customers. November 28 Pay $1,200 to the local utility company for November gas and electricity. November 30 Pay $3,000 rent for November,

Answer 1

Trial Balance
Particulars			Debit	Credit
Cash			$ 19,200.00
Accounts Receivable			$   2,400.00
Supplies			$   1,600.00
Equipment			$   8,900.00
Accounts Payable				$      900.00
Notes Payable				$   2,900.00
Common Stock				$ 16,000.00
Retained Earnings				$   1,500.00
Service Revenue				$ 16,000.00
Salaries Expense			$   1,000.00
Utilities Expense			$   1,200.00
Rent Expense			$   3,000.00
Totals			$ 37,300.00	$ 37,300.00

Workings:

Journals
Date	Particulars			Debit	Credit
1-Nov	Cash			$ 11,000.00
	To Common Stock				$ 11,000.00
2-Nov	Equipment			$   1,500.00
	To Notes Payable				$   1,500.00
4-Nov	Supplies			$   1,100.00
	To Accounts Payable				$   1,100.00
10-Nov	Accounts Receivable			$   7,000.00
	To Service Revenue				$   7,000.00
15-Nov	Accounts Payable			$   1,200.00
	To Cash				$   1,200.00
20-Nov	Salaries Expense			$   1,000.00
	To Cash				$   1,000.00
22-Nov	Cash			$   9,000.00
	To Service Revenue				$   9,000.00
24-Nov	Notes Payable			$      600.00
	To Cash				$      600.00
26-Nov	Cash			$   5,000.00
	To Accounts Receivable				$   5,000.00
28-Nov	Utilities Expense			$   1,200.00
	To Cash				$   1,200.00
30-Nov	Rent			$   3,000.00
	To Cash				$   3,000.00