On November 1, 2017, IKonk, Inc. had the following account balances. The company uses the perpetual inventory method.
On November 1, 2017, 1Konk, Inc. had the following account balances. The company uses the perpetual inventory method. Debit Cash Accounts Receivable Supplies Equipment $9,000 2,240 860 25,000 Accumulated Depreciation-Equipment Accounts Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Credit $1,000 3.400 4.000 1,700 20.000 7,000 $37,100 $37,100 During November, the following summary transactions were completed. Nov. 8 10 11 12 15 19 20 22 25 27 Paid $3,550 for salaries due employees, of which $1,850 is for November and $1,700 is for October. Received $1,900 cash from customers in payment of account. Purchased merchandise on account from Dimas Discount Supply for $8,000, terms 2/10, n/30. Sold merchandise on account for $5,500, terms 2/10, n/30. The cost of the merchandise sold was $4,000. Received credit from Dimas Discount Supply for merchandise returned $300. Received collections in full, less discounts, from customers billed on sales of $5,500 on November 12. Paid Dimas Discount Supply in full, less discount. Received $2,300 cash for services performed in November. Purchased equipment on account $5,000. Purchased supplies on account $1,700. Paid creditors $3,000 of accounts payable due. Paid November rent $375. Paid salaries $1,300. Performed services on account and billed customers $700 for those services. Received $675 from customers for services to be performed in the future. 28 29 29 29 29 Equipment 11/1 Bal. 25,000 Accumulated Depreciation-Equipment 11/1 Bal. 1,000 Accounts Payable 11/1 Bal. 3,400 Unearned Service Revenue 11/1 Bal. 4,000 Salaries and Wages Payable 11/1 Bal. 1,700 Common Stock 11/1 Bal. 20,000 Journalize the November transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Nov. 8 (To record credit sale) (To record cost of merchandise sold) Nov. 19 (To record November rent paid) (To record salaries paid) (To record services performed) To record recoint for carvicos performed Post to the ledger accounts. (Post entries in the order of journal entries presented in the previous part.) Cash 11/1 Bal. 9,000 Accounts Receivable 11/1 Bal. 2,240 Inventory Supplies 11/1 Bal. 860 Equipment 11/1 Bal. 25,000 Accumulated Depreciation-Equipment 11/1 Bal. 1,000 Accounts Payable 11/1 Bal. 3,400 Unearned Service Revenue 11/1 Bal. 4,000 Salaries and Wages Payable 11/1 Bal. 1,700 Common Stock 11/1 Bal. 20,000 Retained Earnings 11/1 Bal. 7,000 Service Revenue 11/22 2,300 11/29 700 Depreciation Expense Supplies Expense Salaries and Wages Expense 11/8 1,850 11/29 1,300 Rent Expense 11/29 375 Sales Revenue 11/12 5,500 Cost of Goods Sold 11/12 4,000 Adjustment data: 1. 2. Supplies on hand are valued at $1,600. Accrued salaries payable are $500. Depreciation for the month is $250. $650 of services related to the unearned service revenue has not been performed by month-end. 3. 4. Journalize the adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit No. Date Account Titles and Explanation Nov. 1. 30 2. Nov. 30 Nov. 30 4. Nov. 30 Post to the ledger accounts. (Post entries in the order of journal entries presented in the previous part.) Cash 11/1 Bal. 9,000 Accounts Receivable 11/1 Bal. 2,240 Inventory Supplies 11/1 Bal. 860 11/1 Bal. 11/25 11/30 Bal. Equipment 25,000 5,000 30,000 Accumulated Depreciation-Equipment 11/1 Bal. 1,000 3,400 11/15 11/20 Accounts Payable 300 11/1 Bal. 7,700 11/11 3,000 11/25 11/27 8.000 11/28 5,000 1,700 11/30 Bal. 7,100 Unearned Service Revenue 11/1 Bal. 4.000 11/29 675 Salaries and Wages Payable 1,700 11/1 Bal. 11/8 1,700 Common Stock 11/1 Bal. 11/30 Bal. 20,000 20,000 Potained Earnings Rent Expense 11/29 375 Sales Revenue 11/12 5,500 Cost of Goods Sol 11/12 4,000 Sales Discounts 11/19 110
