Problem - On November 1 of the current year, Lois Bell began Lois Bell, Interior Design with an initial investment of $50,000 cash. On November 30 her records showed the following (alphabetically arranged) items and amounts:
Problem 1- From the information given, prepare a November income statement.
Problem 2 - Dolly Barton began Barton Office Services in October and during that month completed these transactions:
(a) Invested $10,000 cash, and $15,000 of computer equipment.
(b) Paid $500 cash for an insurance premium covering the next 12 months.
(c) Completed a word processing assignment for a customer and collected $1,000 cash.
(d) Paid $200 cash for office supplies.
(e) Paid $2,000 for October's rent.
Prepare journal entries to record the above transactions. Explanations are unnecessary.
Problem 3 - Prior to recording adjusting entries on December 31, a company's Store Supplies account had an $880 debit balance. A physical count of the supplies showed $325 of unused supplies available as of December 31. Prepare the required adjusting entry.