Sebastian Incorporated had the following balances at the beginning of November. SEBASTIAN INCORPORATED Trial Balance Accounts Cash Accounts Receivable Supplies Equipment Notes Payable Accounts Payable Common Stock Retained Earnings Totals November 1 Debits Credits $2,100 490 590 8,300 $1,450 2,900 5,900 1,230 $11,480 $11,480 The following transactions occur in November. November 1 Issue common stock in exchange for $11,900 cash. November 2 Purchase equipment with a long-term note for $2,400 from Hoosier Corporation. November 4 Purchase supplies for $1,100 on account. November 10 Provide services to customers on account for $7,900. November 15 Pay creditors on account, $1,200. November 20 Pay employees $1,900 for the first half of the month. November 22 Provide services to customers for $9,900 cash. November 24 Pay $960 on the note from Hoosier Corporation. November 26 Collect $5,900 on account from customers. November 28 Pay $1,200 to the local utility company for November gas and electricity. November 30 Pay $3,900 rent for November. Required: 1. Record each transaction. 2. & 3. Post each transaction to the appropriate T-accounts and calculate the balance of each account at November 30. (Hint: Be sure to include the balance at the beginning of November in each T-account.) 4. Prepare a trial balance as of November 30.
Sebastian Incorporated had the following balances at the beginning of November. SEBASTIAN INCORPORATED Trial Balance Accounts Cash Accounts Receivable Supplies Equipment Notes Payable Accounts Payable Common Stock Retained Earnings Totals November 1 Debits Credits $2,100 490 590 8,300 $1,450 2,900 5,900 1,230 $11,480 $11,480 The following transactions occur in November. November 1 Issue common stock in exchange for $11,900 cash. November 2 Purchase equipment with a long-term note for $2,400 from Hoosier Corporation. November 4 Purchase supplies for $1,100 on account. November 10 Provide services to customers on account for $7,900. November 15 Pay creditors on account, $1,200. November 20 Pay employees $1,900 for the first half of the month. November 22 Provide services to customers for $9,900 cash. November 24 Pay $960 on the note from Hoosier Corporation. November 26 Collect $5,900 on account from customers. November 28 Pay $1,200 to the local utility company for November gas and electricity. November 30 Pay $3,900 rent for November. Required: 1. Record each transaction. 2. & 3. Post each transaction to the appropriate T-accounts and calculate the balance of each account at November 30. (Hint: Be sure to include the balance at the beginning of November in each T-account.) 4. Prepare a trial balance as of November 30.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sebastian Incorporated had the following balances at the beginning of November.
SEBASTIAN INCORPORATED
Trial Balance
Accounts
Cash
Accounts Receivable
Supplies
Equipment
Notes Payable
Accounts Payable
Common Stock
Retained Earnings
Totals
November 1
Debits
Credits
$2,100
490
590
8,300
$1,450
2,900
5,900
1,230
$11,480
$11,480
The following transactions occur in November.
November 1 Issue common stock in exchange for $11,900 cash.
November 2 Purchase equipment with a long-term note for $2,400 from Hoosier
Corporation.
November 4 Purchase supplies for $1,100 on account.
November 10 Provide services to customers on account for $7,900.
November 15 Pay creditors on account, $1,200.
November 20 Pay employees $1,900 for the first half of the month.
November 22 Provide services to customers for $9,900 cash.
November 24 Pay $960 on the note from Hoosier Corporation.
November 26 Collect $5,900 on account from customers.
November 28 Pay $1,200 to the local utility company for November gas and
electricity.
November 30 Pay $3,900 rent for November.
Required:
1. Record each transaction.
2. & 3. Post each transaction to the appropriate T-accounts and calculate the balance of
each account at November 30. (Hint: Be sure to include the balance at the beginning of
November in each T-account.)
4. Prepare a trial balance as of November 30.
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