Chapter 2 Analyzing Transactions (11)

1. On November 1, John Paul received $2,500 in advance of Pauls appraisal Services to perform an appraisal at the end of November or early December

2. On November 1, John Paul paid $1,200 for insurance covering liability, theft, and fire. The policy covers a one-year period.

3. On November 4, Dana received a contract from Sothebys Auction House to perform an appraisal for an estate to assist auctioneers in pricing the minimum bid and to estimate the potential proceeds from the auction to be held December 15. Dana paid $1,000 in legal fees to Stewart Jones, Esquire, to review the contract with Sothebys auction on or before November 15.

4. On November 5, Pauls Appraisal Services returned $200 in Supplies back to Staples as the wrong item was shipped.

5. On November 10, Pauls Appraisal Services purchased supplies on account for $650.

6. On November 15, Pauls Appraisal Services received cash of $7,500 from customers for services provided. $4,000 was in settlement of the October 19 bill sent to customers on account. The remaining $3,500 was for services performed during November.

7. On November 30, Pauls Appraisal Services paid the following expenses: wages, $2,000; rent, $800; utilities, $470; and miscellaneous, $105.

8. On November 30, Pauls Appraisal Services paid creditors on account, $450.

9. On November 30, John determined that the cost of supplies on hand at was $325 and recorded the difference as supplies that had been used.

10. On November 30, Pauls Appraisal Services paid car repairs for $275.

11. On November 30, Dana purchased a work table for $700 and 2 chairs for $300 so John Paul and Dana would have a place in the office to work together on projects.