Question: Luke Unlimited Company s account balances on November 1 are as

Luke Unlimited Company’s account balances on November 1 are as follows:
During the month of November, the following transactions took place:
Date Transaction
Nov. 2 Made cash sales of $3,400; the cost of the inventory sold was $2,040.
3 Purchased $900 of inventory for cash.
5 Sold an unused 1/2 acre of land for $4,000; the land had originally cost $3,650.
8 Purchased a 2-year comprehensive insurance policy for $528.
12 Leased an unused portion of its building to WebbCo, collecting 6 months’ rent in advance at $220 per month.
13 Made $2,300 of sales on credit to Lauren Company; the cost of the inventory sold was $1,400.
16 Collected the $200 monthly payment plus $30 interest on a customer’s note receivable.
17 Purchased $1,600 of inventory on credit from Katy Company.
20 Purchased land for a future building site. Made a $2,000 down payment and signed a 12%, 90-day, $6,000 note payable for the balance.
23 Collected the Lauren Company account for the November 13 sale.
26 Paid for the November 17 purchase of inventory.
27 Paid the city newspaper $420 for advertising that had appeared during November.
30 Paid $520 of sales salaries and $390 of office salaries.
1. Prepare general journal entries to record the preceding transactions.
2. Post to general ledger T-accounts.
3. Prepare a trial balance on November 30.

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  • CreatedOctober 05, 2015
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