Powder Keg Company's account balances on November 1 are as follows: Debit Credit Debit Credit Cash...

  

   

Transcribed Image Text:

Powder Keg Company's account balances on November 1 are as follows: Debit Credit Debit Credit Cash $7,800 Patents $25,000 Accounts Receivable 12,530 Accounts Payable $ 38,750 Allowance for Doubtful Accounts $ 740 Notes Payable 2,400 Notes Receivable 6,000 Common Stock, no par 165,000 Inventory 25,121 Retained Earnings, January 1 24,958 Prepaid Insurance 840 Sales Revenue 36,833 Office Supplies 465 Cost of Goods Sold 32,000 Land 74,350 Sales Salaries Expense 6,200 Buildings 66,580 Office Salaries Expense 4,300 Accumulated Depreciation: Advertising Expense 1,250 Buildings 21,400 Utilities Expense 1,845 Equipment 37,620 Interest Revenue 550 Accumulated Depreciation: Interest Expense 210 Equipment 11,480 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. Leased an unused portion of its building to WebbCo, collecting 6 months' rent in advance at $220 per 12 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. Purchased land for a future building site. Made a $2,000 down payment and signed a 12%, 90-day, 20 $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. The November 30 balance in the Cash account would be: $12,692 $7,800 O $11,372 $11,092 Powder Keg Company's account balances on November 1 are as follows: Debit Credit Debit Credit Cash $7,800 Patents $25,000 Accounts Receivable 12,530 Accounts Payable $ 38,750 Allowance for Doubtful Accounts $ 740 Notes Payable 2,400 Notes Receivable 6,000 Common Stock, no par 165,000 Inventory 25,121 Retained Earnings, January 1 24,958 Prepaid Insurance 840 Sales Revenue 36,833 Office Supplies 465 Cost of Goods Sold 32,000 Land 74,350 Sales Salaries Expense 6,200 Buildings 66,580 Office Salaries Expense 4,300 Accumulated Depreciation: Advertising Expense 1,250 Buildings 21,400 Utilities Expense 1,845 Equipment 37,620 Interest Revenue 550 Accumulated Depreciation: Interest Expense 210 Equipment 11,480 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. Leased an unused portion of its building to WebbCo, collecting 6 months' rent in advance at $220 per 12 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. Purchased land for a future building site. Made a $2,000 down payment and signed a 12%, 90-day, 20 $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. The November 30 balance in the Cash account would be: $12,692 $7,800 O $11,372 $11,092

Answer rating: 100% (QA)

cash 20211101 7800 900 20211103 3400 2... View the full answer