Question

On November 1, 2017, Larkspur, Inc. had the following account balances. The company uses the perpetual inventory method.

		Debit				Credit
Cash		$6,840		Accumulated Depreciation—Equipment		$760
Accounts Receivable		1,702		Accounts Payable		2,584
Supplies		654		Unearned Service Revenue		3,040
Equipment		19,000		Salaries and Wages Payable		1,292
		$28,196		Common Stock		15,200
				Retained Earnings		5,320
						$28,196

During November, the following summary transactions were completed.

Nov.	8		Paid $2,698 for salaries due employees, of which $1,406 is for November and $1,292 is for October.
	10		Received $1,444 cash from customers in payment of account.
	11		Purchased merchandise on account from Dimas Discount Supply for $6,080, terms 2/10, n/30.
	12		Sold merchandise on account for $4,180, terms 2/10, n/30. The cost of the merchandise sold was $3,040.
	15		Received credit from Dimas Discount Supply for merchandise returned $228.
	19		Received collections in full, less discounts, from customers billed on sales of $4,180 on November 12.
	20		Paid Dimas Discount Supply in full, less discount.
	22		Received $1,748 cash for services performed in November.
	25		Purchased equipment on account $3,800.
	27		Purchased supplies on account $1,292.
	28		Paid creditors $2,280 of accounts payable due.
	29		Paid November rent $285.
	29		Paid salaries $988.
	29		Performed services on account and billed customers $532 for those services.
	29		Received $513 from customers for services to be performed in the future.

Enter the November 1 balances in ledger T-accounts.

Cash
Accounts Receivable
Supplies
Equipment
Accumulated Depreciation─Equipment
Accounts Payabl

Unearned Service Revenue
Salaries and Wages Payable
Common Stock
Retained Earnings
     
     

Answer 1