Buckeye Incorporated had the following trial balance at the beginning of Novembe

Question

Buckeye Incorporated had the following trial balance at the beginning of November.
BUCKEYE INCORPORATED
Trail Balance

Accounts Debits Credits
Cash $ 2,800
Accounts Receivable 800
Supplies 1,200
Equipment 9,000
Accounts Payable $ 1,500
Notes Payable 2,100
Common Stock 5,100
Retained Earnings 5,100

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The following transactions occur in November:
November 1 Issue common stock in exchange for $13,000 cash.
November 2 Purchase equipment with a long-term note for $4,300 from Spartan Corporation.
November 4 Purchase supplies for $2,000 on account.
November 10 Provide services to customers on account for $10,000.
November 15 Pay creditors on account, $2,000.
November 20 Pay employees $3,500 for the first half of the month.
November 22 Provide services to customers for $12,100 cash.
November 24 Pay $3,000 on the note from Spartan Corporation.
November 26 Collect $5,000 on account from customers.
November 28 Pay $1,900 to the local utility company for November gas and electricity.
November 30 Pay $4,600 rent for November.




Record each transaction in a general journal

Explanation / Answer

November 1 Issue common stock in exchange for $13,000 cash. Debit Cash 13,000 Credit Common Stock 13,000 November 2 Purchase equipment with a long-term note for $4,300 from Spartan Corporation. Debit Equipment 4,300 Credit Note Payable 4,300 November 4 Purchase supplies for $2,000 on account. Debit Supplies 2,000 Credit Accounts Payable 2,000 November 10 Provide services to customers on account for $10,000. Debit Accounts receivable 10,000 Credit Service Revenue 10,000 November 15 Pay creditors on account, $2,000. Debit Accounts payable 2,000 Credit Cash 2,000 November 20 Pay employees $3,500 for the first half of the month. Debit Salary Expense 3,500 Credit Cash 3,500 November 22 Provide services to customers for $12,100 cash. Debit Cash 12,100 Credit service revenue 12,100 November 24 Pay $3,000 on the note from Spartan Corporation. Debit Note payable 3,000 Credit Cash 3,000 November 26 Collect $5,000 on account from customers. Debit Cash 5,000 Credit Accounts receivable 5,000 November 28 Pay $1,900 to the local utility company for November gas and electricity. Debit Utility expense 1,900 Credit cash 1,900 November 30 Pay $4,600 rent for November. Debit rent expense 4,600 Credit cash 4,600

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