Question

On November 1, 2012 the following were the account balances ofSolo Sales and Service, Inc. The perpetual inventory method isused.

	Debits			Credits
Cash	$4,795		Accumulated depreciation	$1,000
Accounts Receivable	2,320		Accounts Payable	6,800
Supplies	1,000		Unearned Service Revenue	400
Equipment	40,000		Salaries Payable	550
			Common Stock	11,000
			Retained Earnings	28,365
	$48,115			$48,115

During November the followingsummary transactions were completed.

Nov. 8	Paid $1,150 for salaries due employees, of which $550 is forOctober salaries payable and $600 is for November.
10	Received $1,400 cash from customers in payment of account.
11	Purchased merchandise on account from Midwest Wholesale Supplyfor $6,000, terms 2/10, n/30.
12	Sold merchandise on account for $4,500, terms 2/10, n/30. Thecost of the merchandise sold was $3,000.
15	Received credit from Midwest Wholesale Supply for merchandisereturned $200.
19	Received collections in full, less discounts, from customersbilled on sales of $4,500 on November 12.
20	Paid Midwest Wholesale Supply in full, less discount. (Don’tforget the return on the 15th.)
22	Received $1,300 cash for services performed in November.
25	Purchased equipment on account $3,000.
27	Purchased supplies on account $1,300.
28	Paid creditors $2,500 of accounts payable due.
29	Paid November rent $300.
29	Paid salaries $1,100.
29	Performed services on account and billed customers for servicesprovided $1,900.
29	Received $550 from customers for services to be provided in thefuture.

Adjustment data:

1.	Supplies on hand are valued at $1,600.
2.	Accrued salaries payable as of 11/30 are $500.
3.	Depreciation for the month is $750.
4.	$650 of the unearned service revenue has not been earned bymonth end.

Instructions

Print out the solution pages for thegeneral ledger, journal and worksheet that follow and enter thefollowing transactions (might be a good idea to use pencil):

Enter the November 1 balances in ledger accounts. Use T accountsprovided on the next page.

Enter the November transactions (not adjusting entries untilrequirement “e”) in the general journal provided on the nextpage.

Post to the ledger accounts. You will need to add someaccounts.

Prepare an unadjusted trial balance at November 30 and enter onthe worksheet. Then complete the other worksheet columns. (Seebelow.)

Worksheetrequirement: Using your unadjusted trial balance fromabove instructions and the data for adjusting entries, prepare a 10column worksheet similar to the one in the chapter 4 appendix ofyour text.

Journalize and post adjusting entries.

Prepare a multi-step income statement and aretained earnings statement for November and aclassified balance sheet at November 30. Use yourown paper. (No formatted sheets are supplied as we did for theother items.) These statements must be properlytitled/formatted.

Journalize and post closing entries.