Question

Comprehensive Accounting Cycle Review 5-02 (Part Level Submission)

On November 1, 2022, Kingbird had the following account balances. The company uses the perpetual inventory method.

		Debit				Credit
Cash		$25,200		Accumulated Depreciation—Equipment		$2,800
Accounts Receivable		6,272		Accounts Payable		9,520
Supplies		2,408		Unearned Service Revenue		11,200
Equipment		70,000		Salaries and Wages Payable		4,760
		$103,880		Common Stock		56,000
				Retained Earnings		19,600
						$103,880

During November, the following summary transactions were completed.

Nov.	8		Paid $9,940 for salaries due employees, of which $5,180 is for November and $4,760 is for October.
	10		Received $5,320 cash from customers in payment of account.
	11		Purchased merchandise on account from Dimas Discount Supply for $22,400, terms 2/10, n/30.
	12		Sold merchandise on account for $15,400, terms 2/10, n/30. The cost of the merchandise sold was $11,200.
	15		Received credit from Dimas Discount Supply for merchandise returned $840.
	19		Received collections in full, less discounts, from customers billed on sales of $15,400 on November 12.
	20		Paid Dimas Discount Supply in full, less discount.
	22		Received $6,440 cash for services performed in November.
	25		Purchased equipment on account $14,000.
	27		Purchased supplies on account $4,760.
	28		Paid creditors $8,400 of accounts payable due.
	29		Paid November rent $1,050.
	29		Paid salaries $3,640.
	29		Performed services on account and billed customers $1,960 for those services.
	29		Received $1,890 from customers for services to be performed in the future.

(b)

Journalize the November transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit

Answer 1

	Journal Entries in the Books of Kingbird
Date	Account titles and explanation		Debit	Credit
Nov-08	Salary and wages expenses		$               4,760
	Salary and wages Payable		$               5,180
	Cash			$           9,940
Nov-10	Cash		$               5,320
	Accounts Receivable			$           5,320
Nov-11	Merchandise Inventory		$             22,400
	Accounts payable-Dimas			$         22,400
Nov-12	Accounts Receivable		$             15,400
	Sales			$         15,400
Nov-12	Cost of goods sold		$             11,200
	Merchandise Inventory			$         11,200
Nov-15	Accounts payable-Dimas		$                  840
	Merchandise Inventory			$              840
Nov-19	Cash		$             15,092
	Sales Discounts($15,400*2%)		$                  308
	Accounts Receivable			$         15,400
Nov-20	Accounts payable-Dimas		$             22,400
	Purchase Discount[($22,400-$840)*2%]			$              431
	Cash			$         21,969
Nov-22	Cash		$               6,440
	Service Revenue			$           6,440
Nov-25	Equipment		$             14,000
	Accounts Payable			$         14,000
Nov-27	Supplies		$               4,760
	Accounts Payable			$           4,760
Nov-28	Accounts Payable		$               8,400
	Cash			$           8,400
Nov-29	Rent expense		$               1,050
	Cash			$           1,050
Nov-29	Salary and Wages expense		$               3,640
	Cash			$           3,640
Nov-29	Accounts Receivable		$               1,960
	Service Revenue			$           1,960
Nov-29	Cash		$               1,890
	Unearned Service Revenue			$           1,890