$10.$ Prepare general journal entries for the following transactions:

November $1$ The company purchased equipment for $$22,000$ cash.

November $2$ The company purchased $$8,000$ of furniture on credit.

November $3$ The company paid $$1,200$ cash for a $12-$month prepaid insurance policy.

November $4$ The company billed a customer $$6,000$ for services provided.

November $12$ The company paid $$8,000$ cash toward the payable from the November $2$

furniture purchase.

November $20$ The company collected $$6,000$ cash for services billed on November $4.$

November $21$ The company received $$20,000$ cash upon completion of services for a

customer.

November $30$ The company received $$10,000$ cash in advance of providing services to a

customer.

$11.$ A company began operations on August $1.$ The Company$$s accounts and

their balances, as of the end of August, are included below. All accounts

have normal balances:

Accounts receivable$ $36,000$ Cash $ $27,000$

Equipment $59,000$ Advertising expense $5,000$

Service revenue $75,000$ Accounts payable $31,000$

Rent expense $3,600$ Salaries expense $30,000$

Office supplies $1,500$ Total equity $34,100$

Notes payable $22,000$

a$.$ Calculate net income.

b$.$ Determine the amount of total assets to be shown on the August $31$ balance

sheet.

$12.$ The calendar year$-$end adjusted trial balance for Blessinger Company

follows:

BLESSINGER COMPANY

Adjusted Trial Balance

December $31$

Debit Credit

Cash $ $112,000$

Accounts receivable $27,000$

Prepaid rent $15,000$

Prepaid Insurance $9,000$

Office supplies $3,300$

Office equipment $38,000$

Accumulated depreciation$$Equipment $ $3,200$

Building $288,000$

Accumulated depreciation$$Building $42,000$

Land $700,000$

Accounts payable $34,800$

Salaries payable $14,500$

Interest payable $2,500$

Long$-$term note payable $63,000$

Common stock $200,000$

Retained earnings $710,000$

Dividends $200,500$

Services revenue $430,800$

Salaries expense $90,000$

Insurance expense $5,200$

Rent expense $5,000$

Depreciation expense$$Equipment $800$

Depreciation expense$$Building $7,000$

Totals $ $1,500,800$ $ $1,500,800$

Required:

$($a$)$ Determine the amounts of current assets and current liabilities.

$($b$)$ Calculate the current ratio. Comment on the ability of Blessinger Company to

meets its short$-$term debts.

$13.$ Barbara$$s Boats uses the perpetual inventory system and the net method of

accounting for purchases. The company had the following transactions

during January:

January $6$: Purchased $$10,000$ of inventory. The seller's credit terms are $2/10,$ n$/30.$

January $31$: Full payment was made.

Prepare journal entries to record each of the preceding transactions.

$14.$ Freestone Company reports the following income statement accounts for the

year ended December $31.$ Prepare a multiple$-$step income statement that

includes separate categories for net sales, cost of goods sold, selling

expenses, and general and administrative expenses. Categorize the

following accounts as selling expenses: Sales Staff Salaries and Advertising

Expense. Categorize the remaining expenses as general and administrative.

Sales discounts $ $1,500$ Office supplies expense $ $1,000$

Office salaries expense $4,000$ Cost of goods sold $18,000$

Rent expense $$ Office space $3,000$ Sales $40,000$

Advertising expense $1,000$ Insurance expense $2,000$

Sales returns and allowances $500$ Sales staff salaries $5,00$