Question

On November 1, 2012 the following were the account balances ofSolo Sales and Service, Inc. The perpetual inventory method isused.

	Debits			Credits
Cash	$4,795		Accumulated depreciation	$1,000
Accounts Receivable	2,320		Accounts Payable	6,800
Supplies	1,000		Unearned Service Revenue	400
Equipment	40,000		Salaries Payable	550
			Common Stock	11,000
			Retained Earnings	28,365
	$48,115			$48,115

During November the followingsummary transactions were completed.

Nov. 8	Paid $1,150 for salaries due employees, of which $550 is forOctober salaries payable and $600 is for November.
10	Received $1,400 cash from customers in payment of account.
11	Purchased merchandise on account from Midwest Wholesale Supplyfor $6,000, terms 2/10, n/30.
12	Sold merchandise on account for $4,500, terms 2/10, n/30. Thecost of the merchandise sold was $3,000.
15	Received credit from Midwest Wholesale Supply for merchandisereturned $200.
19	Received collections in full, less discounts, from customersbilled on sales of $4,500 on November 12.
20	Paid Midwest Wholesale Supply in full, less discount. (Don’tforget the return on the 15th.)
22	Received $1,300 cash for services performed in November.
25	Purchased equipment on account $3,000.
27	Purchased supplies on account $1,300.
28	Paid creditors $2,500 of accounts payable due.
29	Paid November rent $300.
29	Paid salaries $1,100.
29	Performed services on account and billed customers for servicesprovided $1,900.
29	Received $550 from customers for services to be provided in thefuture.

Adjustment data:

1.	Supplies on hand are valued at $1,600.
2.	Accrued salaries payable as of 11/30 are $500.
3.	Depreciation for the month is $750.
4.	$650 of the unearned service revenue has not been earned bymonth end.

Instructions

Enter the November 1 balances in ledger accounts. Use T accountsprovided on the next page.

Cash

Accounts Receivable

Supplies

Store Equipment

Accumulated Depreciation— Store Equipment

Accounts Payable

Unearned Service Revenue

Salaries Payable

Common Stock

Retained Earnings

General Ledger (Continued)

Income Summary