Question
November 1 Acquired $41,000 from the issuance of common stock. On the same day, acquired $20,000 from the bank by signing a note. The note
November 1 | Acquired $41,000 from the issuance of common stock. On the same day, acquired $20,000 from the bank by signing a note. The note carries a five-year term and 9% annual interest rate. Interest is payable annually on October 31 of each year. |
November 2 | Paid $7,800 in advance rent for a one-year lease on a small office. |
November 4 | Paid $40,000 to purchase office equipment. The equipment was expected to have a useful life of 6 years and a salvage value of $1,120. |
November 6 | Purchased supplies for $460 cash. |
November 9 | Received $600 cash as an advance payment from a client for services P&P will perform in December. |
November 10 | Performed solar installation service for various customers. Some customers paid in cash the total cash received was $1,250. Other customers asked to be billed the total billed was $950. |
November 16 | Paid $1,060 cash for employee salaries. |
November 18 | Collected $500 from accounts receivable. |
November 23 | Received monthly utility bills showing an amount due of $145. The bill will be paid in December. |
November 25 | Paid $225 as an advertising expense for advertisements run during November. |
November 30 | Performed solar installation service for various customers. Some customers paid in cash the total cash received was $1,150. Other customers asked to be billed the total billed was $3,600. |
Requirement 1: Prepare journal entries for the November transactions and post to the ledger.
Requirement 2: Prepare an unadjusted trial balance for November 30, 2022.
Information for adjusting entries for November 30:
November 30 | A count shows $110 of supplies in the office. Record supplies expense for November. |
November 30 | P&P employees have earned $1,060 in salaries. They will be paid on December 1. Record the salary expense for November. |
November 30 | Record interest expense for November. |
November 30 | Record rent expense for November. |
November 30 | Record depreciation expense for November (using the straight-line method). |
Requirement 3: Prepare journal entries for the adjustments for November and post to the ledger.
Requirement 4: Prepare an adjusted trial balance for November 30, 2022.
Requirement 5: Prepare an income statement, statement of retained earnings, and balance sheet for the month of November 2022.
Requirement 6: Prepare closing journal entries for November and post to the ledger.
Requirement 7: Prepare a post-closing trial balance for November 30, 2022.
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