Question

I need solutions to instructions d, e, f, and g.

ACR5.2 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 Equipment S 1,000 Accounts Receivable 2.240 3,400 Supplies Equipment 860 25,000 Accounts Payable 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. 8 10 Paid $3,550 for salaries due employees, of which $1,850 is for November and $1,700 is for October Received $1,900 cash from customers in payment of account.

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Answer 1

Ikonk Inc. Journal Enteries Date Particulars 8.11.2022 Salaries and Wages Payable a/c Dr. Salaries and Wages Expense a/c Dr. To Cash (Salaries and Wages paid) Debit in $ Credit in $ 1700 1850 3550 Dr. 1900 10.11.2022 Cash a/c To Accounts Receivable (Cash from debtors) 1900 Dr. 8000 11.11.2022 Inventory a/c To Accounts Payable (Inventory on account) 8000 Dr. 5500 12.11.2022 Accounts Receivable a/c To Sales (Sales on account) 5500 4000 Cost of goods sold a/c Dr. To Inventory (To record cost of goods sold) 4000 Dr. 300 15.11.2022 Accounts Payable a/c To Inventory (Inventory returned) 300 Dr. 5390 110 Dr. 19.11.2022 Cash a/c Sales Discount a/c To Accounts Receivable (Cash from debtors) 5500 7700 20.11.2022 Accounts Payable a/c Dr. To Inventory To Cash (Creditors paid) 7700 x 2% = 154 154 7546 Dr. 2300 22.11.2022 Cash a/c To Service Revenue (Services performed for cash) 2300 Dr. 5000 25.11.2022 Equipment a/c To Accounts Payable (Equipment on account) 5000

Dr. Date Particulars 27.11.2022 Supplies a/c To Accounts Payable (Supplies on account) Debit in $ Credit in $ 1700 1700 Dr. 3000 28.11.2022 Accounts Payable a/c To Cash (Creditors paid) 3000 Dr. 375 29.11.2022 Rent Expense a/c To Cash (Rent paid) 375 1300 29.11.2022 Salaries and Wages Expense a/c Dr. To Cash (Salaries and Wages paid) 1300 Dr. 700 29.11.2022 Accounts Receivable a/c To Service Revenue (Services on account) 700 675 29.11.2022 Cash a/c Dr. To Unearned Service Revenue (Advance from client) 675 Adjusting Enteries Date Particulars 30.11.2022 Supplies Expense a/c Dr. To Supplies (Supplies Expensed)860 + 1700 - 1600 Debit in $ Credit in $ 960 960 500 30.11.2022 Salaries and Wages Expense a/c Dr. To Salaries and Wages Payable (Salaries and wages accrued) 500 Dr. 250 30.11.2022 Depreciation Expense a/c To Accum. Depre - Equip (To record depreciation) 250 4025 30.11.2022 Unearned Service Revenue a/c To Service Revenue (Services on account) 4025 Debit in $ Credit in $ 9345 110 4000 Closing Enteries Date Particulars 30.11.2022 Income Summary a/c Dr. To Sales Discount To Cost of goods sold To Rent Expense To Salaries and Wages Expense To Supplies Expense To Depreciation Expense (Expense accounts closed) 375 3650 960 250 Dr. 7025 5500 Dr. 30.11.2022 Service Revenue a/c Sales a/c To Income Summary (Revenue accounts closed) 12525 Dr. 3180 30.11.2022 Income Summary a/c To Retained Earnings (Profits transferred) 3180

Worksheet For the period ending 31.12.2022 Particulars Cash Accounts Receivable Inventory Supplies Equipment Accum. Depre - Equip. Accounts Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Service Revenue 0 Unadjusted Adjustments Adjusted Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 3494 3494 1040 1040 3546 3546 2560 960 1600 30000 30000 1000 250 1250 7100 7100 4675 4025 650 500 500 20000 20000 7000 7000 3000 4025 7025 5500 5500 110 110 4000 4000 375 375 3150 500 3650 960 960 250 48275 48275 5735 5735 49025 49025 Sales Sales Discount Cost of goods sold Rent Expense Salaries and Wages Expense Supplies Expense Depreciation Expense Totals 250 5500 -110 5390 -4000 1390 Statement of Income For the period ending 31.12.2022 Sales Sales Discount Net Sales Cost of goods sold Gross Profit Rent Expense Salaries and Wages Expense Supplies Expense Depreciation Expense Operating Income Non Operating Service Revenue Net Income 375 3650 960 250 5235 -3845 7025 3180 Statement of Retained Earnings For the period ending 31.12.2022 Beginning Balance Add:Net Income 7000 3180 10180

Amounts in $ Amounts in $ Balance sheet As at 31.12.2022 Assets Amounts in $ Amounts in $ Liabilities Current Assets Current Liabilities Cash 3494 Accounts Payable Accounts Receivable 1040 Unearned Service Revenue Inventory 3546 Salaries and Wages Payable Supplies 1600 9680 Shareholders Equity Non Current Assets Common Stock Equipment 30000 Retained Earnings Accum. Depre - Equip -1250 28750 Total Assets 38430 Total Liabilities & Equity 7100 650 500 8250 20000 10180 30180 38430