Carbon Company entered into the following trans- actions during November:
Nov. 1 Issued common stock in exchange for $15,000 cash.
4 Purchased $6,500 of equipment, paying $4,000 in cash and the remainder on account.
8 Paid $5,000 for investments, which will mature in six months.
12 Billed customers $12,550 for services rendered.
16 Hired office assistant at a salary equal to being paid $1,000 every two weeks.
21 Received $8,950 from customers billed on Nov. 12.
22 Purchased $1,500 of supplies on account.
24 Paid $1,000 towards the remaining balance on the equipment purchase.
29 Paid $500 in dividends to stockholders.
30 Paid $3,400 for November salaries.
After journalizing these transactions, Carbon Company's general ledger appeared as follows:

Required
a. Reproduce Carbon Company's journal entries for November.
b. Post the journal entries to the appropriate T-accounts.
c. Compare your postings to those of Carbon Company and identify Carbon's recording errors.
d. Prepare a trial balance at November 30.

Transcribed Image Text:

Cash Accounts Payable 21st 8,950 8th 5,000 24th 1,000 30th 3,400 1st 15,000 4th 4,000 24th 1,000 4th 2,500 16th 1,000 22th 1,500 Accounts Receivable Common Stock 12th 12,550 29th 500 1st 15,000 Supplies Service Revenue30 Ja 12th 12,550 21th 8,950 22th 1,500 Short-Term Investments Salaries Expense 16th 1,000 30th 4,300 8th 5,000 Equipment Dividends 4th 6,500 29th 500