Required 1. Prepare journal entries.

2. Enter beginning balances in T-accounts. Post the journal entries to T-accounts. Use the transaction letters to key your postings.

3. Prepare a trial balance for the month ending November 30, 20X0.

4. Explain why accounts payable increased by so much during November.

3-37 Journal, Ledger, and Trial Balance OBJECTIVE 3, 4 (Alternates are 3-39 through 3-44.) The balance sheet accounts of Detroit Machinery, Inc., had the following balances on October 31, 20XO: Cash $ 41,000 Accounts receivable 90,000 Inventory 70,000 Prepaid rent 2.000 Accounts payable $ 27,000 Paid-in capital 160,000 Retained earnings 16,000 $203,000 $203,000 Following is a summary of the transactions that occurred during November: a. Collections of accounts receivable, $75,000. b. Payments of accounts payable, $14,000. c. Acquisitions of inventory on open account, $80,000. d. Merchandise carried in inventory at a cost of $70.000 was sold on open account for $96.000