Question
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
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.
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