At the beginning of November, Madison decides to expand her business by selling ne European mixers. The owner of Batter Blender Supply Co. has approached Madison to become the exclusive distributor of these ne mixers in her state. The current cost of a mixer is approximately $575, and Madison plans to sell each for $1,150. Each appliance has a serial number and can be easily identied. Madison uses the perpetual inventory system to account for these ne mixers. She also decides to start using special journals and subsidiary ledgers to help keep track of her new customers and vendors, sales and purchases, and cash ows. (Hint: Refer to Chapter 11 to calculate the cost of inventory.) The following transactions occurred during the month of November. Nov. 4 6 7 10 12 15 20 21 22 23 26 28 29 30 30 Bought ve mixers on account from Batter Blender Supply Co. for $2,875, terms nl30. Paid $100 freight on the November4 purchase. Check 158. Returned one of the mixers to Batter Blender because it was damaged during shipping. Batter Blender issues Sweet Treats credit for the cost of the mixer. Bought four mixers on account from Batter Blender Supply Co. for $2,300, terms nl30. Madison is concerned that there is not enough cash available to pay for all of the mixers purchased. She invests an additional $2,000 cash in Sweet Treats. Paid $80 freight on the November 9 purchase. Check 159. Madison issued a check to her assistant for all the help at the elementary school on October 30. (Recall this amount was accrued at the end of October.) Check 160. Paid a $145 cell phone bill (Hint: Use Utilities Expense). Check 161. Paid Batter Blender the amount due from the November 4 purchase. Check 162. Collected $300 from the October 30 transaction with Newbury Elementary School. Three mixers are sold to Peter's Pastries on account for $3,450, terms nl30. Invoice 1011. (Hint: You must record both the revenue and expense components on all sales transactions.) Sold two mixers for $2,300 cash. Collected the amount due from Peter's Pastries for the November 23 transaction. Paid Batter Blender the amount due from the November 9 purchase. Check 163. Paid her assistant for the last two weeks of November in the amount of $960. Check 164 Madison withdrew $750 cash for personal use. Check 165. SWEET TREATS PRACTICE SET Madison Carter spent much of her childhood learning the art of cookie-making from her grandmother. They spent many enjoyable hours mastering every type of cookie imaginable and later creating new recipes that were both healthy and delicious. Now at the start of her second year in college, Madison is investigating various possibilities for starting her own business as part of the requirements of the entrepreneurship program in which she is enrolled. A long-time friend insists that Madison has to somehow include cookies in her business plan. After a series of brainstorming sessions, Madison settles on the idea of operating a cookie-making school called "Sweet Treats". She will start on a part-time basis and offer her services \"in-house\". Now that she has started thinking about it, the possibilities seem endless. During the fall, she will concentrate on holiday cookies. She will offer individual lessons and group sessions. Madison decides to operate Sweet Treats as a sole proprietorship beginning on October 8\"\Sales Journal S1 Invoice Accts. Rec. Dr. COGS Dr. Date Account Debited No. Ref. Sales Rev. Cr. Inventory Cr. November Totals Accounts Sales Journal S2November Worksheet Trial Balance Adjustments Adjusted Trial Bal. Income Statement Balance Sheet Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash Accounts Receivable Inventory Baking Supplies Prepaid Insurance Equipment Accum. Depr.-Equipment Notes Payable Accounts Payable Salaries and Wages Payable Interest Payable Owner's Capital Owner's Drawings Service Revenue Sales Revenue Cost of Goods Sold Advertising Expense Baking Supplies Expense Depreciation Expense Insurance Expense Salaries and Wages Expense Rent Expense Utilities Expense Interest Expense TOTALS Net Income TOTALS