The following information applies to the questions displayed below. Buckeye Incorporated had the following balances at the beginning of November. BUCKEYE
INCORPORATED
Trial Balance
November 1
Accounts Debits Credits
Cash $1,200
Accounts Receivable 400
Supplies 500
Equipment 7,400
Accounts Payable $1,000
Notes Payable 2,000
Common Stock 5,000
Retained Earnings 1,500
Totals $9,500 $9,500
The following transactions occur in November.
November 1 Issue common stock in exchange for $11,000 cash.
November 2 Purchase equipment with a long-term note for $1,500 from Spartan Corporation.
November 4 Purchase supplies for $1,100 on account.
November 10 Provide services to customers on account for $7,000.
November 15 Pay creditors on account, $1,200.
November 20 Pay employees $1,000 for the first half of the month.
November 22 Provide services to customers for $9,000 cash.
November 24 Pay $600 on the note from Spartan Corporation.
November 26 Collect $5,000 on account from customers.
November 28 Pay $1,200 to the local utility company for November gas and electricity.
November 30 Pay $3,000 rent for November.
Required:
Record each transaction.
No Date General Journal Credit Debit
1 November 01 Cash 12,800
Common Stock 12 800

BUCKEYE  INCORPORATED

General Journal:

No Date          Description  Debit       Credit

1     November 01

Cash                                  $11,000

Common Stock                                 $11,000

To record the issue of common stock for cash.

2.  November 02

Equipment                       $1,500

Long-term Note Payable                   $1,500

To record the purchase of equipment from Spartan Corporation.

3.  November 04

Supplies                         $1,100

Accounts Payable                             $1,100

To record the purchase of supplies on account.

4.  November 10

Accounts Receivable   $7,000

Service Revenue                              $7,000

To record the provision of services to customers on account.

5.  November 15

Accounts Payable        $1,200

Cash Account                                  $1,200

To record the payment to suppliers on account.

6.  November 20

Salaries Expense         $1,000

Cash Account                                  $1,000

To record the payment of salaries for the first half month.

7.  November 22

Cash Account             $9,000

Service Revenue                            $9,000

To record the provision of services to customers for cash.

8.  November 24

Long-term Notes Payable $600

Cash Account                                   $600

To record the payment on note to Spartan Corporation.

9.  November 26

Utilities expense              $1,200

Cash Account                                 $1,200

To record the payment for gas and electricity for November.

10.  November 30

Rent expense                 $3,000

Cash Account                                 $3,000

To record the payment of rent for November.

Explanation:

General Journals:  Buckeye Incorporated can use the general journal to record its business transactions as they occur on a daily basis.  It shows the accounts involved in the transaction and the accounts to be debited and credited as the case may be.

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