The balance sheet accounts of Detroit Machinery, Inc., had the following balances on October 31, 20X0:

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.

e. Recognition of rent expense for November, $1,000.

f. Wages paid in cash for November, $8,000.

g. Cash dividends declared and disbursed to stockholders on November 29, $10,000.

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. Prepare a balance sheet as of November 30, 20X0, and an income statement for the month of November. Prepare the retained earnings column of a statement of stockholders equity. Prepare the income statement first.

Cash $ 41,000 Accounts receivable Inventory Prepaid rent Accounts payable Paid-in capital Retained earnings 90.000 70.000 2.000 $ 27,000 160.000 16.000 $203,000 $203,000 Dromb Cash $ 41,000 Accounts receivable Inventory Prepaid rent Accounts payable Paid-in capital Retained earnings 90.000 70.000 2.000 $ 27,000 160.000 16.000 $203,000 $203,000 Dromb