The following information applies to the questions displayed below.] Buckeye Inc
ID: 2336741 • Letter: T
Question
The following information applies to the questions displayed below.] Buckeye Incorporated had the following trial balance at the beginning of November. BUCKEYE INCORPORATED Trial Balance Debits Credits Accounts Cash Accounts Receivable Supplies Equipment Accounts Payable Notes Payable Common Stock Retained Earnings $2,900 570 670 9,100 $1,850 3,700 6,700 990 The following transactions occur in November: November 1 Issue common stock in exchange for $12,700 cash. November 2 Purchase equipment with a long-term note for $3,200 from Spartan Corporation. November 4 Purchase supplies for $1,000 on account. November 10 Provide services to customers on account for $8,700 November 15 Pay creditors on account, $1,100. November 20 Pay employees $2,700 for the first half of the month. November 22 Provide services to customers for $10,700 cash. November 24 Pay $1,280 on the note from Spartan Corporation. November 26 Collect $6,700 on account from customers. November 28 Pay $1,100 to the local utility company for November gas and electricity. November 30 Pay $4,700 rent for November.Explanation / Answer
SOLUTION:
Journal entries:
Debit
Credit
Nov-01
Cash
12,700
Common stock
12,700
Nov-02
Equipment
3,200
Notes payable
3,200
Nov-04
Supplies
1,000
Accounts payable
1,000
Nov-10
Accounts receivable
8,700
Service revenue
8,700
Nov-15
Accounts payable
1,100
Cash
1,100
Nov-20
Salaries expense
2,700
Cash
2,700
Nov-22
Cash
10,700
Service revenue
10,700
Nov-24
Notes payable
1,280
Cash
1,280
Nov-26
Cash
6,700
Accounts receivable
6,700
Nov-28
Utilities expense
1,100
Cash
1,100
Nov-30
Rent expense
4,700
Cash
4,700
TRIAL BALANCE
Cash
22,120
Accounts receivable
2570
Supplies
1670
Equipment
12300
Accounts payable
1750
Notes payable
5620
Common stock
19400
Retained earnings
990
Service revenue
19400
Salaries expense
2700
Utilities revenue
1100
Rent expense
4700
47160
47160
Debit
Credit
Nov-01
Cash
12,700
Common stock
12,700
Nov-02
Equipment
3,200
Notes payable
3,200
Nov-04
Supplies
1,000
Accounts payable
1,000
Nov-10
Accounts receivable
8,700
Service revenue
8,700
Nov-15
Accounts payable
1,100
Cash
1,100
Nov-20
Salaries expense
2,700
Cash
2,700
Nov-22
Cash
10,700
Service revenue
10,700
Nov-24
Notes payable
1,280
Cash
1,280
Nov-26
Cash
6,700
Accounts receivable
6,700
Nov-28
Utilities expense
1,100
Cash
1,100
Nov-30
Rent expense
4,700
Cash
4,700
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