On November 1, 2025, IKonk, Inc. had the following account balances. The company uses the perpetual inventory method.

During November, the following summary transactions were completed.
Nov. 8 Paid $\$3,550$ for salaries due employees, of which $\$1,850$ is for November and $\$1,700$ is for October.
10 Received $\$1,900$ cash from customers in payment of account.
11 Purchased merchandise on account from Dimas Discount Supply for $\$8,000$, terms $2/10,n/30$.
12 Sold merchandise on account for $\$5,500$, terms $2/10,n/30$. The cost of the merchandise sold was $\$4,000$.
15 Received credit from Dimas Discount Supply for merchandise returned $\$300$.
19 Received collections in full, less discounts, from customers billed on sales of $\$5,500$ on November 12.
20 Paid Dimas Discount Supply in full, less discount.
22 Received $2,300 cash for services performed in November.
25 Purchased equipment on account $\$5,000$.
27 Purchased supplies on account $\$1,700$.
28 Paid creditors $\$3,000$ of accounts payable due.
29 Paid November rent $\$375$.
29 Paid salaries $\$1,300$.
29 Performed services on account and billed customers $\$700$ for those services.
29 Received $\$675$ from customers for services to be performed in the future.

Adjustment data:

1. Supplies on hand are valued at $\$1,600$.
2. Accrued salaries payable are $\$500$.
3. Depreciation for the month is $\$250$.
4. $\$650$ of services related to the unearned service revenue has not been performed by month-end.

Instructions

a. Enter the November 1 balances in ledger $T$-accounts.

b. Journalize the November transactions.

c. Post to the ledger accounts. You will need to add some accounts.

d. Journalize and post adjusting entries.

e. Prepare an adjusted trial balance at November 30.

f. Prepare a multiple-step income statement and a retained earnings statement for November and a classified balance sheet at November 30.
g. Journalize and post closing entries.

Transcribed Image Text:

Cash Accounts Receivable Supplies Equipment Debit $ 9,000 2,240 860 25,000 $37,100 Accumulated Depreciation- Equipment Accounts Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Credit $ 1,000 3,400 4,000 1,700 20,000 7,000 $37,100