Perpetual Inventory Method

a a ces, of which $1,850 is for November 1 Purchased equipment by signing a 2-year note payable for $5,000. The note has a 6% interest rate which is payable on the first day of each following month. 2 Issued 1,000 shares of common stock with no par value for $12,000 cash. 3 Paid $3,600 cash for a 12-month insurance policy effective November 1. 8 Paid $3,550 for salaries due employees, of which $1,850 is for November and $1,700 is for October. 10 Received $1,900 cash from customers in payment of account. 11 Purchased merchandise on account from Dimas Discount Supply for $8,000, terms 2/10, n/30. 12 Sold merchandise on account for $5,500, terms 2/10, n/30. The cost of the merchandise sold was $4,000 15 Received credit from Dimas Discount Supply for merchandise returned $300. 19 Received collections in full, less discounts, from customers billed on sales of $5,500 on November 12. 20 Paid Dimas Discount Supply in full, less discount. 22 Received $2,300 cash for services performed in November 27 Purchased supplies on account $1,700. 28 Paid creditors $3,000 of accounts payable due. 29 Paid November rent $375. 29 Paid salaries $1,300. 29 Performed services on account and billed customers $700 for those services 29 Received $675 from customers for services to be performed in the future. Adjustment data: 1) Adjustment of prepaid insurance. 2) Supplies on hand are valued at $1,600. 3) Accrued salaries payable are $500. 4) Depreciation for the month is $300. 5) $650 of services related to the unearned service revenue had not been performed by month-end. 6) Accrual of interest on note payable. Required: a) Enter the November 1 balances in ledger T-accounts b) Journalize the November transactions. Omit explanations. c) Post to the ledger accounts. You will need to add some accounts. d) Journalize and post adjusting entries. e) Prepare an adjusted trial balance at November 30. f) Prepare a multiple-step income statement and a retained earnings statement for November and a classified balance sheet at November 30. g) Journalize and post closing entries. Account Title Credits Debits $ 9,000 2,240 860 25,000 Cash Accounts Receivable Supplies Equipment Accumulated Depr.- Equipment Accounts Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Totals $ 1,000 3,400 4,000 1,700 20,000 7,000 $ 37,100 $ 37,100 During November, the following transactions occurred