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Enter the November 1 balances in the ledger accounts. (Use T-accounts)

To enter the November 1 balances into the ledger accounts using T-accounts, we will organize the debits and credits into the respective accounts, keeping in mind that:

- Debits increase assets (like Cash, Accounts Receivable, Supplies, Equipment) and decrease liabilities/equity.
- Credits increase liabilities (like Accounts Payable, Salaries Payable) and equity (Common Stock, Retained Earnings).

Based on the image, here are the balances to enter into the T-accounts:

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**Assets (Debit Balances):**

1. **Cash**: Debit $3,420
2. **Accounts Receivable**: Debit $3,070
3. **Supplies**: Debit $1,730
4. **Equipment**: Debit $10,610

---

**Liabilities and Equity (Credit Balances):**

1. **Accumulated Depreciation—Equipment**: Credit $520
2. **Accounts Payable**: Credit $2,910
3. **Unearned Service Revenue**: Credit $400
4. **Salaries and Wages Payable**: Credit $780
5. **Common Stock**: Credit $10,610
6. **Retained Earnings**: Credit $3,610

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### T-Account Setup:
We will prepare T-accounts for each of the following:

1. **Cash (Asset)**:
   - Debit $3,420

2. **Accounts Receivable (Asset)**:
   - Debit $3,070

3. **Supplies (Asset)**:
   - Debit $1,730

4. **Equipment (Asset)**:
   - Debit $10,610

5. **Accumulated Depreciation—Equipment (Contra-Asset)**:
   - Credit $520

6. **Accounts Payable (Liability)**:
   - Credit $2,910

7. **Unearned Service Revenue (Liability)**:
   - Credit $400

8. **Salaries and Wages Payable (Liability)**:
   - Credit $780

9. **Common Stock (Equity)**:
   - Credit $10,610

10. **Retained Earnings (Equity)**:
   - Credit $3,610

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I can now assist with entering these into actual T-accounts, as well as updating them with the subsequent November transactions. Do you need help with setting up the T-accounts or any further details?

Here are 5 related questions to consider:
1. How would you categorize each November transaction into the appropriate T-accounts?
2. Should any of the November transactions affect accumulated depreciation?
3. How will retained earnings change after accounting for expenses and revenue in November?
4. Which accounts will be affected by the salaries payable and payment of salaries in November?
5. How does the November 1 balance sheet compare to the end-of-month trial balance?

**Tip**: T-accounts visually represent the flow of debits and credits, making it easier to track balances in each account throughout a period.

Learn how to enter November 1 balances into ledger accounts using T-accounts for Wildhorse Equipment Repair. This example covers fundamental accounting principles such as debits, credits, assets, liabilities, and equity.

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