The trial balance of Jewel’s Diamond Dazzles, Inc., on November 1, 2011, lists the company’s assets, liabilities, and shareholders’ equity on that date.

During November, Diamond Dazzles completed the following transactions:

1. The company borrowed $5,000 from the bank with a short-term note payable.

2. Diamond Dazzles paid cash of $8,500 to acquire land.

3. The company sold $5,000 of inventory to customers and collected the cash of $15,000.

4. Diamond Dazzles purchased supplies on credit, $375.

5. The company sold $1,000 of inventory to customers for $2,500 on account.

Set up T-accounts for the accounts given in the November 1 trial balance. Then post the preceding transactions to the accounts.

Calculate the account balances and prepare an unadjusted trial balance at November 30.

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Trial Balance Account title Cash Debit Credit $18,000 Accounts receivable 6,500 7,500 Inventory Accounts payable Common stock $11,700 8,800 Retained earnings 11,500 $32,000 Total $32,000