Ike Petrov started a tour company Tour Along on October

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Ike Petrov started a tour company, Tour-Along, on October 1, 2014. The following activities
occurred during November, the second month of operations:Nov. 1 Paid $10,000 regarding
purchases made on account during October.2 Purchased a $34,000 photocopier, paying $6,000
cash and signing a note payable for the balance.3 Purchased office supplies for cash; $800.4
Signed a $200,000 contract with RBC to arrange travel for its employees beginning January 1,
2015.14 Paid wages of $6,000.20 Collected $14,000 for clients travelling in November. 25 Ike
Petrov withdrew $2,000 cash for personal use. 30 Paid interest on the notes payable;
$150.Required1. Prepare General Journal entries to record the November transactions.2. Set
up the following T-accounts, entering the balances brought forward from October 31, 2014:
Cash (101) $26,000; Office Supplies (124) $900; Office Equipment (163) $36,000; Accounts
Payable (201) $43,000; Notes Payable (205) $20,000; Ike Petrov, Capital (301) $8,000; Ike
Petrov, Withdrawals (302) $4,000; Travel Revenue (401) $34,000; Wages Expense (623)
$38,000; and Interest Expense (633) $100.3. Post the entries to the accounts; calculate the
ending balance in each account.4. Prepare a trial balance at November 30, 2014.5. Use the trial
balance to prepare an income statement and statement of changes in equity for the two months
ended November 30, 2014, as well as a balance sheet at November 30, 2014.Analysis
Component: Part 2 of the Required states that the account Ike Petrov, Capital had a balance of
$8,000 at October 31, 2014. Explain what this balance represents.View Solution:
Ike Petrov started a tour company Tour Along on October 1

ANSWER
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