Question

View Policies Current Attempt in Progress Blue Equipment Repair began operating in September 2017. It prepares financial statements at the end of each month. On November 1, 2017, a tabular summary includes the following information. Note that Blue began the month with $3,640 in Retained Earnings. This balance represents the results of its first two months of business. Assets Stockholdi Liabilities Unearn. Serv. Rev. Acc. Depr.- Equip. = Accts. Rec. Com. Accts. Pay. Cash + Stock Sal./Wages Pay. 820 + Supplies + 1,760 + Equip. 10,640 11/1 Bal. 3,430 + 3,110 + + 500 2.940 + 400 + + 10,640 + During November, the following summary transactions were completed. Nov. 8 10 12 Paid $1,220 for salaries due employees, of which $400 is for November and $820 is for October salaries payable. Received $1,850 cash from customers in payment of account. Received $3,800 cash for services performed in November. Purchased store equipment on account $4,010. Purchased supplies on account $1,400. Paid creditors $2,510 of accounts payable due. 15 17 20

Answer 1

= Liabilities Stockholder's Equity + Accumulated Depreciation Equipment 500 Supplies $1,760 + Total Assets Prepaid Accounts Salaries Receivable + and Wages + $3,110 + + 400 + (1,850) + - + + + - + Unearned Service Revenue $400 + Equipment $10,640 + + Accounts Payable $2.940 Salaries and wages Payable 820 (820) Common Stock + $10,640 + + + Retained Earnings $3,640 - + + + Cash $3,430 (1,220) 1,850 3,800 - + + + + = + + + + + + + + = + 3,800 - - - 1,400 + + - + 4,010 + + + + + 4,010 1.400 (2,510) + Date Nov 1 Noy 8 Nov 10 Nov 12 Nov 15 Nov 17 Nov 20 Nov 22 Nov 25 Nov 27 Nov 29 Balance Adjustment 1 + + + + + + + + + + (2,510) (510) (1,010) + + - + = + + + - + + - + + + - + + + (510) (1,010) 990 990 + - + + + + + + 800 - + + + + 800 + + $4,630 $2.250 + $3,160 + $14,650 $500 $5,840 + $1,200 + $10,640 + $6,910 + + + (600) + + + + 2 + - + - + + + 490 + + + + + + + 270 + + + + 3 4 (600) (490) (270) 550 $6,100 + + + + + $4,630 + $2,250 + $2,560 + $14,650 $770 = $5,840 + 490 (550) $650 $6,980 Balance Total $10,640 $400 + $23,720 $16,740