Answer:
November 1 Issue common stock in exchange for $11,000 cash.
Dr Cash 11,000
Cr Common stock 11,000
November 2 Purchase equipment with a long-term note for $1,500 from Spartan Corporation.
Dr Equipment 1,500
Cr Notes payable 1,500
November 4 Purchase supplies for $1,100 on account.
Dr Supplies 1,100
Cr Accounts payable 1,100
November 10 Provide services to customers on account for $7,000.
Dr Accounts receivable 7,000
Cr Service revenue 7,000
November 15 Pay creditors on account, $1,200.
Dr Accounts payable 1,200
Cr cash 1,200
November 20 Pay employees $1,000 for the first half of the month.
Dr Wages expense 1,000
Cr cash 1,000
November 22 Provide services to customers for $9,000 cash.
Dr Cash 9,000
Cr Service revenue 9,000
November 24 Pay $600 on the note from Spartan Corporation.
Dr Notes payable 600
Cr Cash 600
November 26 Collect $5,000 on account from customers.
Dr Cash 5,000
Cr Accounts receivable 5,000
November 28 Pay $1,200 to the local utility company for November gas and electricity.
Dr Utilities expense 1,200
Cr Cash 1,200
November 30 Pay $3,000 rent for November.
Dr Rent expense 3,000
Cr Cash 3,000
Cash Common stock
debit credit debit credit
1,200 5,000
11,000 <u> 11,000</u>
1,200 16,000
1,000
9,000
600
5,000
1,200
<u> 3,000</u>
19,200
Accounts receivable Supplies
debit credit debit credit
400 500
7,000 <u>1,100 </u>
<u> 5,000</u> 1,600
2,400
Equipment Accounts Payable
debit credit debit credit
7,400 1,000
<u>1,500 </u> 1,100
8,900 <u>1,200 </u>
900
Notes Payable Service revenue
debit credit debit credit
2,000 7,000
1,500 <u> 9,000</u>
<u>600 </u> 16,000
2,900 <u>6,000 closed</u>
Retained Earnings Wages expense
debit credit debit credit
1,500 1,000
<u> 10,800</u> <u>closed 1,000 </u>
12,300
Utilities expense Rent expense
debit credit debit credit
1,200 3,000
<u>closed 1,200 </u> <u>closed 3,000</u>
net income for the month = $16,000 - $5,200 = $10,800, so retained earnings should increase by $10,800
