Question
Northstar Corp. began operations on November 1, 2023, and showed the following account balances at November 30. Cash: $46,000; Accounts Receivable: $1,400; Supplies: $3,000; Accounts
Northstar Corp. began operations on November 1, 2023, and showed the following account balances at November 30. Cash: $46,000; Accounts Receivable: $1,400; Supplies: $3,000; Accounts Payable: $7,000; Unearned Revenue: $4,100; Share Capital: $41,400; Dividends: $2,800; Consulting Revenue Earned: $2,300; Advertising Expense: $1,600. The following transactions occurred during December.
December 1 : Andrew Martin (a shareholder), received share capital in Northstar Corp., after investing $20,000 cash and $5,000 worth of supplies in Northstar Corp.
December 4 : Northstar Corp. provided $1,750 of consulting services for a customer who will pay within 30 days.
December 5 : Northstar Corp. used $200 cash and $700 credit to purchase $900 of supplies.
December 6 : The bill for the $1,250 advertising campaign that ran last week was received today and paid.
December 7 : Provided consulting services to a customer and collected $700.
December 8 : $400 of supplies purchased on credit in transaction (c) were found to be defective. They were returned.
December 10 : Northstar Corp. returned $200 of defective supplies today that were originally purchased for cash.
December 11 : Northstar Corp. paid $100 towards the bill from transaction (c).
December 14 : Northstar Corp. received $1,600 towards payment for the services provided in transaction (b).
December 17 : A bill was received today for last week's $1,250 advertising campaign. It must be paid within 15 days.
Enter each account balance as of November 30 in the appropriate T-account, and then record the transactions by entering the debit and credit entries directly in the T-accounts. Use the date for each transaction to identify the entries, placing the date in the left-hand cell and the amount in the right-hand cell of the appropriate side of the T-account. Then determine the balance of each account, and write 'Balance' (or 'Bal') next to it, in the left-hand cell on the appropriate side.
Please complete by hand so I can understand how everything get's done.
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