The question was: Joe Sixpack began a web-based computer sales and service company on November 1, 2015 called Sixpack's Toys Corporation. The plan is to prepare monthly adjustments so that financial statements can be done each month. The following information is available for November, 2015 (assume a perpetual inventory system) November Joe invested $12,000 cash along with $9.000 of computer equipment into his new business in exchange for 500 shares. The equipment is estimated to have a useful life of 5 years and have no value after that time. Purchased 10 months worth of insurance for $1,200 cash; the insurance is effective immediately. $25,000 of merchandise was purchased from Velor Inc. on account; terms 1/10,n30. 2 Bought used office furniture for $1,800 cash. It is estimated that the business will use the furniture for 5 years and then donate it to a charity. 4 Sold merchandise to John Smith that cost $2,900 for $3,900; terms 1/15, n30. 10 The customer of November 4, 2015 returned $800 of their purchase due to defects; the returned merchandise will not be returned to inventory. 13 Purchased $10,000 of merchandise inventory from United Corporation; terms 1/10,n30; FOB shipping point. 14 Received the November 13, 2015 purchase and paid cash of $150 for shipping. 14 Paid for the merchandise purchased from Velor Inc. on November 1, 2015. 15 Bought $400 of office supplies; paid cash. 15 Collected the balance owing regarding the November 4, 2015 sale. 15 Sold merchandise to John Smith that cost $5,600 for $6,300 cash. 16 Paid for the merchandise purchased from United Corporation on November 13, 2015. Additional information available at month end, November 30: A count of the office supplies showed a balance on November 30 of $50. The merchandise inventory was counted and there was a balance on hand at November 30 of $25,350 The November utility bill arrived from Epcor Utility Company: the $550 balance owing must be paid by December 15, 2015. Please make sure your final answer(s) are accurate to 2 decimal places. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). For each journal entry, indicate how each account affects the balance sheet (Assets, Liabilities, Equity). Use + increase and - for decrease. For example, if an account decreases equity, choose - Equity'. Prepare the journal entries based on the transactions that occurred from November 1 to November 30. Also, record the six adjusting entries for the month ended November 30 based on the additional information and a review of the November transactions. Your solution was: Journal entries: General Journal Page Gj1 Date Account/Explanation F Debit Credit 1/Nov Accounts Receivable, John Smith Sales Effect On Balance Sheet Marking The date should be November 4, but you have not entered this date. This will cost you 1 mark. Journal Entry 1: November 4: Sold merchandise "Accounts Receivable, John Smith' should be debited for the amount of $3,900, but you have not done this. This will cost you 1 mark. You have not included the 'Cost Of Goods Sold' account in this joumal entry. This will cost you 2 marks. Sales' should be credited for nt of $3,900, but you have not done ti This v You have not included the 'Merchandise Inventory' account in this journal entry. This will cost you 2 marks. will cost you 1 mark. A debit will cause 'Accounts Receivable, John Smith' to increase increasing assets. However, you have not selected a balance sheet effect. This will cost you 1 mark. A credit will cause Sales' to increase, increasing equity. However, you have not selected a balance sheet effect. This will cost you 1 mark. You have not prepared an entry for each of the following transactions: November 1: Capital investment, November 1: Purchased insurance, November 1: Purchased merchandise, November 2: Bought office furniture, November 10: Sales return, November 13: Purchased merchandise inventory, November 14: Paid shipping, November 14: Purchase payment, November 15: Bought office supplies, November 15: Sale collection, November 15: Sold merchandise, November 16: Paid for merchandise. This will cost you 48 marks. Adjusting entries: General al Journal Page Gj1 Effect On Date Account Explanation F Debit Credit Balance Sheet +Assets Marking: Journal Entry 4: November 30: Office furniture depreciation The date should be November 30, but you have not entered this date. This will cost you 1 mark. You have not included the 'Depreciation Expense, Office Furniture account in this journal entry. This will cost you 2 marks You have not included the 'Accumulated Depreciation Office Furniture' account in this journal entry. This will cost you 2 marks. You have entered at least one balance sheet effect without a corresponding account. However, you will not lose any marks for this. You have not entered a description for this transaction. However you will not lose any marks for this. You have not prepared an entry for each of the following transactions: November 30: Office supplies expense, November 30: Cost of goods sold, November 30: Utilities expense, November 30: Computer equipment depreciation, November 30: Insurance expense. This will cost you 20 marks. Total marks for this question: 0 The question was: Joe Sixpack began a web-based computer sales and service company on November 1, 2015 called Sixpack's Toys Corporation. The plan is to prepare monthly adjustments so that financial statements can be done each month. The following information is available for November, 2015 (assume a perpetual inventory system) November Joe invested $12,000 cash along with $9.000 of computer equipment into his new business in exchange for 500 shares. The equipment is estimated to have a useful life of 5 years and have no value after that time. Purchased 10 months worth of insurance for $1,200 cash; the insurance is effective immediately. $25,000 of merchandise was purchased from Velor Inc. on account; terms 1/10,n30. 2 Bought used office furniture for $1,800 cash. It is estimated that the business will use the furniture for 5 years and then donate it to a charity. 4 Sold merchandise to John Smith that cost $2,900 for $3,900; terms 1/15, n30. 10 The customer of November 4, 2015 returned $800 of their purchase due to defects; the returned merchandise will not be returned to inventory. 13 Purchased $10,000 of merchandise inventory from United Corporation; terms 1/10,n30; FOB shipping point. 14 Received the November 13, 2015 purchase and paid cash of $150 for shipping. 14 Paid for the merchandise purchased from Velor Inc. on November 1, 2015. 15 Bought $400 of office supplies; paid cash. 15 Collected the balance owing regarding the November 4, 2015 sale. 15 Sold merchandise to John Smith that cost $5,600 for $6,300 cash. 16 Paid for the merchandise purchased from United Corporation on November 13, 2015. Additional information available at month end, November 30: A count of the office supplies showed a balance on November 30 of $50. The merchandise inventory was counted and there was a balance on hand at November 30 of $25,350 The November utility bill arrived from Epcor Utility Company: the $550 balance owing must be paid by December 15, 2015. Please make sure your final answer(s) are accurate to 2 decimal places. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). For each journal entry, indicate how each account affects the balance sheet (Assets, Liabilities, Equity). Use + increase and - for decrease. For example, if an account decreases equity, choose - Equity'. Prepare the journal entries based on the transactions that occurred from November 1 to November 30. Also, record the six adjusting entries for the month ended November 30 based on the additional information and a review of the November transactions. Your solution was: Journal entries: General Journal Page Gj1 Date Account/Explanation F Debit Credit 1/Nov Accounts Receivable, John Smith Sales Effect On Balance Sheet Marking The date should be November 4, but you have not entered this date. This will cost you 1 mark. Journal Entry 1: November 4: Sold merchandise "Accounts Receivable, John Smith' should be debited for the amount of $3,900, but you have not done this. This will cost you 1 mark. You have not included the 'Cost Of Goods Sold' account in this joumal entry. This will cost you 2 marks. Sales' should be credited for nt of $3,900, but you have not done ti This v You have not included the 'Merchandise Inventory' account in this journal entry. This will cost you 2 marks. will cost you 1 mark. A debit will cause 'Accounts Receivable, John Smith' to increase increasing assets. However, you have not selected a balance sheet effect. This will cost you 1 mark. A credit will cause Sales' to increase, increasing equity. However, you have not selected a balance sheet effect. This will cost you 1 mark. You have not prepared an entry for each of the following transactions: November 1: Capital investment, November 1: Purchased insurance, November 1: Purchased merchandise, November 2: Bought office furniture, November 10: Sales return, November 13: Purchased merchandise inventory, November 14: Paid shipping, November 14: Purchase payment, November 15: Bought office supplies, November 15: Sale collection, November 15: Sold merchandise, November 16: Paid for merchandise. This will cost you 48 marks. Adjusting entries: General al Journal Page Gj1 Effect On Date Account Explanation F Debit Credit Balance Sheet +Assets Marking: Journal Entry 4: November 30: Office furniture depreciation The date should be November 30, but you have not entered this date. This will cost you 1 mark. You have not included the 'Depreciation Expense, Office Furniture account in this journal entry. This will cost you 2 marks You have not included the 'Accumulated Depreciation Office Furniture' account in this journal entry. This will cost you 2 marks. You have entered at least one balance sheet effect without a corresponding account. However, you will not lose any marks for this. You have not entered a description for this transaction. However you will not lose any marks for this. You have not prepared an entry for each of the following transactions: November 30: Office supplies expense, November 30: Cost of goods sold, November 30: Utilities expense, November 30: Computer equipment depreciation, November 30: Insurance expense. This will cost you 20 marks. Total marks for this question: 0