On November 1, 2017, Sage Hill Inc. had the following account balances. The company uses the perpetual inventory method. Debit $7,380 Cash Credit $820 2.788 Accounts Receivable Supplies Equipment 1,837 705 Accumulated Depreciation-Equipment Accounts Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings 3,280 1,394 20,500 $30,422 16,400 5,740 $30,422 During November, the following summary transactions were completed. Nov. 8 10 11 12 15 19 Paid $2,911 for salaries due employees, of which $1,517 is for November and $1,394 is for October Received $1,558 cash from customers in payment of account. Purchased merchandise on account from Dimas Discount Supply for $6,560, terms 2/10, n/30. Sold merchandise on account for $4,510, terms 2/10, n/30. The cost of the merchandise sold was $3,280. Received credit from Dimas Discount Supply for merchandise returned $246. Received collections in full, less discounts, from customers billed on sales of $4,510 on November 12. Paid Dimas Discount Supply in full, less discount. Received $1,886 cash for services performed in November. Purchased equipment on account $4,100. Purchased supplies on account $1,394. Paid creditors $2,460 of accounts payable due. Paid November rent $308. Paid salaries $1,066. Performed services on account and billed customers $574 for those services. Received $554 from customers for services to be performed in the future. 20 22 25 27 28 29 29 29 29 Adjustment data: 1. 2. 3. Supplies on hand are valued at $1,312. Accrued salaries payable are $410. Depreciation for the month is $205. $533 of services related to the unearned service revenue has not been performed by month- end. 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 O for the amounts.) Date Account Titles and Explanation Debit C Nov. 30 Nov. 30 Nov. 30 Nov. 30 Post the above adjusting entries. (Post entries in the order of journal entries presented above.) Cash 11/1 Bal. 11/10 11/19 7,380 11/8 1,558 11/20 4,420 11/28 1,886 11/29 554 11/29 2,911 6,188 2,460 308 11/22 11/29 1,066 11/30 Bal. 2,865 Accounts Receivable 11/1 Bal. 1,837 11/10 1,558 4,510 11/12 4,510 | 11/19 11/29 574 11/30 Bal. 853 11/11 Inventory 6,560 11/12 11/15 3,280 246 11/20 126 11/30 Bal. 2,908 Supplies 11/1 Bal. 705 11/27 1,394 11/1 Bal. 11/25 11/30 Bal. Equipment 20,500 4,100 24,600 Accumulated Depreciation-Equipment 11/1 Bal. 820 11/15 Accounts Payable 246 | 11/1 Bal. 6,314 11/11 2,460 11/25 11/20 11/28 2,788 6,560 4,100 1,394 11/27 11/30 Bal. 5,822 Unearned Service Revenue 11/1 Bal. 3,280 11/29 554 Salaries and Wages Payable 1,394 11/1 Bal. 11/8 1,394 Common Stock 16,400 11/1 Bal. 11/30 Bal. 16,400 Retained Earnings 11/1 Bal. 5,740 Service Revenue 11/22 1,886 11/29 574 Depreciation Expense Depreciation Expense Supplies Expense Salaries and Wages Expense 11/8 1,517 11/29 1,066 Rent Expense 11/29 308 Sales Revenue 11/12 4.510 Cost of Goods Sold 11/12 3,280 Sales Discounts 11/19 90
