On June 1, 2019, Kris Storey established an interior decorating business, Eco-Centric Designs. During the month, Kris completed the following transactions related to the business:

June
1. Kris transferred cash from a personal bank account to an account to be used for the business, $35,000.
1. Paid rent for the period of June 1 to the end of the month, $4,750.
6. Purchased office equipment on account, $14,100.
8. Purchased a van for $28,500 paying $4,500 cash and giving a note payable for the remainder. 10. Purchased supplies for cash, $2,380.
12. Received cash for a job completed, $12,200.
15. Paid annual premiums on property and casualty insurance, $3,600.
23. Recorded jobs completed on the account and sent invoices to customers, $11,900.
24. Received an invoice for van expenses, to be paid in June, $1,500.
June 29. Paid utility expense, $3,100.
29. Paid miscellaneous expenses, $950.
30. Received cash from customers on account, $7,330.
30. Paid wages of employees, $5,070.
30. Paid creditor a portion of the amount owed for equipment purchased on June 6, $6,825.
30. Withdrew cash for personal use, $1,600.

Instructions

1. Journalize each transaction in a two-column journal beginning on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) Explanations may be omitted.

11 Cash
31 Kris Storey, Capital
12 Accounts Receivable
32 Kris Storey, Drawing
13 Supplies
41 Fees Earned
14 Prepaid Insurance
51 Wages Expense
16 Equipment
53 Rent Expense
18 Van
54 Utilities Expense
21 Notes Payable
55 Van Expense
22 Accounts Payable
59 Miscellaneous Expense

2. Post the journal to a ledger of four-column accounts, inserting appropriate posting references as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted.
3. Prepare an unadjusted trial balance for Eco-Centric Designs as of June 30, 2019.
4. Determine the excess of revenues over expenses for June.
5. Can you think of any reason why the amount determined in (4) might not be the net income for June?

Question

On June 1, 2019, Kris Storey established an interior decorating business, Eco-Centric Designs. During the month, Kris completed the following transactions related to the business:

 
June
1. Kris transferred cash from a personal bank account to an account to be used for the business, $35,000.
 1. Paid rent for the period of June 1 to the end of the month, $4,750.
 6. Purchased office equipment on account, $14,100.
 8. Purchased a van for $28,500 paying $4,500 cash and giving a note payable for the remainder. 10. Purchased supplies for cash, $2,380.
12. Received cash for a job completed, $12,200.
15. Paid annual premiums on property and casualty insurance, $3,600.
 23. Recorded jobs completed on the account and sent invoices to customers, $11,900.
 24. Received an invoice for van expenses, to be paid in June, $1,500.
June 29. Paid utility expense, $3,100.
 29. Paid miscellaneous expenses, $950.
 30. Received cash from customers on account, $7,330.
 30. Paid wages of employees, $5,070.
 30. Paid creditor a portion of the amount owed for equipment purchased on  June 6, $6,825.
 30. Withdrew cash for personal use, $1,600.
 
Instructions
 
1. Journalize each transaction in a two-column journal beginning on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) Explanations may be omitted.
 
11 Cash
31 Kris Storey, Capital
12 Accounts Receivable
32 Kris Storey, Drawing
13 Supplies
41 Fees Earned
14 Prepaid Insurance
51 Wages Expense
16 Equipment
53 Rent Expense
18 Van
54 Utilities Expense
21 Notes Payable
55 Van Expense
22 Accounts Payable
59 Miscellaneous Expense
 
2. Post the journal to a ledger of four-column accounts, inserting appropriate posting references as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted.
3. Prepare an unadjusted trial balance for Eco-Centric Designs as of June 30, 2019.
4. Determine the excess of revenues over expenses for June.
5. Can you think of any reason why the amount determined in (4) might not be the net income for June?

Nov.	1	Kris transferred cash from apersonal bank account to an account to be used for the business inexchange for common stock, $27,600.
	1	Paid rent for period of November 1to end of month, $3,200.
	6	Purchased office equipment onaccount, $12,860.
	8	Purchased a truck for $31,700paying $6,200 cash and giving a note payable for theremainder.
	10	Purchased supplies for cash,$1,480.
	12	Received cash for job completed,$8,400.
	15	Paid annual premiums on propertyand casualty insurance, $2,400.
	23	Recorded jobs completed on accountand sent invoices to customers, $12,060.
	24	Received an invoice for truckexpenses, to be paid in November, $1,230.

Nov.	29	Paid utilities expense,$3,590.
	29	Paid miscellaneous expenses,$1,500.
	30	Received cash from customers onaccount, $7,400.
	30	Paid wages of employees,$4,200.
	30	Paid creditor a portion of theamount owed for equipment purchased on November 6, $6,190.
	30	Paid dividends, $2,200.

	Required:
1.	Journalize each transaction ina two-column journal beginning on Page 1, referring to the chart ofaccounts in selecting the accounts to be debited and credited. (Donot insert the post reference numbers until you have posted theentry to the general ledger in part 2.) Refer to the Chart ofAccounts for exact wording of account titles.
2.	Post (in chronological order)the journal to a ledger of four-column accounts, insertingappropriate posting references in both the journal and the ledgeras each item is posted. Extend the balances to the appropriatebalance columns after each transaction is posted.
3.	Prepare an unadjusted trialbalance for Modern Designs as of November 30, 2018.
4.	Determine the excess ofrevenues over expenses for November.
5.	Can you think of any reason whythe amount determined in (4) might not be the net income forNovember?

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