Question

Buckeye Incorporated had the following balances at the beginning of November BUCKEYE INCORPORATED Trial Balance November 1 Accounts Debits Credits Cash $ 1,700 Accounts Receivable 450 Supplies 550 Equipment 7,900 Accounts Payable $ 1,250 Notes Payable 2,500 Common Stock 5,500 Retained Earnings 1,350 Totals $10,600 $10,600 The following transactions occur in November. November 1 Issue common stock in exchange for $11,500 cash. November 2 Purchase equipment with a long-term note for $2,000 from Spartan Corporation. November 4 Purchase supplies for $1,200 on account. November 10 Provide services to customers on account for $7,500. November 15 Pay creditors on account, $1,000. November 20 Pay employees $1,500 for the first half of the month. November 22 Provide services to customers for $9,500 cash. November 24 Pay $800 on the note from Spartan Corporation. November 26 Collect $5,500 on account from customers. November 28 Pay $1,000 to the local utility company for November gas and electricity. November 30 Pay $3,500 rent for November.

Answer 1

Solution

1 2 $ $ Debit Credit 11500 11500 Date Particulars Nov-01 Cash Common stock 3 4 5 6 2000 Nov-02 Equipment Notes Payable 7 2000 00 9 1200 Nov-04 Supplies Accounts Payable 10 1200 11 12 7500 Nov-10 Accounts Receivable Service Revenue 13 7500 14 15 1000 Nov-15 Accounts Payable Cash 16 1000 17 18 1500 Nov-20 Salaries Expense Cash 19 1500 20 21 9500 Nov-22 Cash Service Revenue 22 9500 23 24 800 Nov-24 Notes Payable Cash 25 800 26 27 5500 Nov-26 Cash Accounts Receivable 28 5500 29 30 1000 Nov-28 Utilities Expense Cash 31 1000 32 33 3500 Nov-30 Rent expense Cash 34 3500

1 2. 3 4 36 Buckeye Incorporated 37 Trial Balance 38 Nov-30 39 Accounts Debit Credit Note 40 Cash 20400 41 Accounts Receivable 2450 42 Supplies 1750 43 Equipment 9900 44 Accounts Payable 1450 45 Notes Payable 3700 46 Common Stock 17000 47 Retained Earnings 1350 48 Service Revenue 17000 49 Salary Expense 1500 50 Utilities Expense 1000 51 Rent Expense 3500 52 Total 40500 40500 5 6 7 8 53 54 55 56 1700 57 Note 1 Cash Opening Balance Add Common Stock Service Revenue Accounts Receivable 58 11500 59 60 9500 5500 28200 61 62 63 1000 1500 64 65 Less Accounts Payable Salary Expense Notes Payable Utilities Expense Rent Expense Closing Balance 66 800 1000 3500 20400 67 68 69

450 7500 5500 2450 70 Note 2 71 Accounts Receivable 72 Opening Balance 73 Add: Service Revenue 74 Less: Cash collected from customers 75 Closing Balance 76 77 Note 3 78 Supplies 79 Opening Balance 80 Add: Purchase of supplies 81 Closing Balance 82 550 1200 1750 83 Note 4 7900 2000 9900 84 Equipment 85 Opening Balance 86 Add: Purchase of equipment 87 Closing Balance 88 89 Note 5 90 Accounts Payable 91 Opening Balance 92 Add: Purchase of supply on account 93 Less: Payment to creditors 94 Closing Balance 1250 1200 1000 1450 ОС

96 Note 6 2500 97 Notes Payable 98 Opening Balance 99 Add:Purchase of Equipment 100 Less: Payment made 101 Closing Balance 102 2000 800 3700 5500 103 Note 7 104 Common Stock 105 Opening balance 106 Add: Further issue 107 Closing Balance 108 11500 17000 109 Note 8 110 Service Revenue 7500 111 Accounts Receivable 112 Cash 113 Total 9500 17000 114 115 116 117 118 119 120 121