Barnes Computers Ltd. (Barnes) has an October 31 fiscal year end and prepared adjusting journal entries monthly.

Required:

Record the appropriate journal entries for the transactions in November. If no entry is required, clearly state no entry required.

Nov. 2 Barnes collects $500 from a new client for computer repair to be completed in December.

Nov. 5 Contacted a clients lawyer today regarding a complaint about computer repairs provided. The client is planning to sue Barnes for $5,000.

Nov. 8 The company purchased a van (fair value of $22,000) and computer diagnostic equipment (fair value of $10,000). The purchase was completed by Barnes paying $8,000 in cash and getting a loan payable for the remaining amount.

Nov. 10 Collected $1,600 from a client for work that was completed on account at the end of September.

Nov. 18 In October Barnes purchased $1,400 worth of computer repair supplies from a supplier on account. The transaction was recorded correctly in October. Barnes paid half of the amount owing today.

Nov 30 Paid the monthly interest owing on a $12,000, 6% loan payable. (No principal is due at this time.)

Nov. 30 Paid wages to a part-time employee for hours worked in November. The employee worked 16 days at $65/day.