Carbon Company entered into the following trans actions during November Nov
Carbon Company entered into the following trans- actions during November:
Nov. 1 Issued common stock in exchange for $15,000 cash.
4 Purchased $6,500 of equipment, paying $4,000 in cash and the remainder on account.
8 Paid $5,000 for investments, which will mature in six months.
12 Billed customers $12,550 for services rendered.
16 Hired office assistant at a salary equal to being paid $1,000 every two weeks.
21 Received $8,950 from customers billed on Nov. 12.
22 Purchased $1,500 of supplies on account.
24 Paid $1,000 towards the remaining balance on the equipment purchase.
29 Paid $500 in dividends to stockholders.
30 Paid $3,400 for November salaries.
After journalizing these transactions, Carbon Company's general ledger appeared as follows:
a. Reproduce Carbon Company's journal entries for November.
b. Post the journal entries to the appropriate T-accounts.
c. Compare your postings to those of Carbon Company and identify Carbon's recording errors.
d. Prepare a trial balance at November 30.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help