50.1K

Verified Solution

Link Copied!

ournal Entries and Trial Balance en October 1, 2016, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business Oct. 1. Jay transferred cash from a personal bank account to an account to be used for the business, $30,400 Paid rent for period of October 4 to end of month, 52,950. 10. Purchased a used truck for $25,000, paying $2,000 cash and giving a note payable for the remainder 13. Purchased equipment on account, $11,860. 14. Purchased supplies for cash, $2,040 15. Paid annual premiums on property and casualty insurance, $4,560, 15. Received cash for job completed, $12.770 Enter the following transactions on Page 2 of the two-column journal 21 Paid creditor a portion of the amount owed for equipment purchased on October 13, 54,230, Recorded jobs completed on account and sent invoices to customers, 514,530. 26 Received an invoice for truck expenses, to be paid in November, $1,340. 27 Paid utilities expense, 51,520, 27 Paid miscellaneous expenses, $550. 29 Received cash from customers on account, 56,080 30 Paid wages of employees, 54,040, Withdrew cash for personal use, $3,370 31 2. Post (in chronological order) the journal to a ledger of four column accounts, inserting appropriate posting references in the general journal as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted. If an amount box does not require an entry, leave it blank General Ledger Account Cash ACCOUNT NO. 11 Balance Date Item Post. Rel. Debit Credit Debit Credit 2015 (Oct 30,400 loc 4 2,950 2,000 Oct. 10 (Oct. 14 2,040 Oct. 15 4,560 Oct. 15 12,770 Oct. 21 4,230 Oct, 27 1,520 Oct. 27 550 Oct. 29 6,080 Oct. 30 4,040 Oct. 31 3,370 Account 12 Accounts Receivable ACCOUNT NO. Balance Date Item Post. Ref. Debit Credit Credit Debit 2016 Oct. 24 Oct. 29 Account Supplies ACCOUNT NO. 13 Balance Date Item Post. Ref. Debit Credit Debit Credit 2016 Oct. 14 2,040 14 Account Prepaid Insurance ACCOUNT NO. Balance Credit Debit Date Credit Item Debit Post. Ref. 2016 Oct. 15 16 ACCOUNT NO. Account Equipment Balance Credit Date Debit Item Debit Post. Ref. Credit 2016 Oct. 13 18 ACCOUNT NO. Account Truck Balance Credit Date Debit Item Debit Post. Ref. Credit 2016 Oct. 10 Account 21 Notes Payable ACCOUNT NO. Balance Date Item Post. Ref. Debit Credit Debit Credit 2016 Oct. 10 ACCOUNT NO. 22 Account Accounts Payable Balance Credit Date Item Debit Post. Ref. Debit Credit 2046 Oct. 13 Oct. 21 Oct. 26 Account 31 Jay Pryor, Capital ACCOUNT NO. Balance Item Date Post. Ref. Debit Credit Debit Credit 2046 Oct. 1 ebook 32 ACCOUNT NO. Account Jay Pryor, Drawing Balance Debit Credit Date Item Post. Ref. Debit Credit 2016 Oct. 31 Account 41 Fees Earned ACCOUNT NO. Balance Date Credit Item Debit Post. Ref. Debit Credit 2016 Oct. 15 Oct. 24 51 ACCOUNT NO. Account Wages Expense Balance Date Item Post. Ref. Debit Credit Credit Debit 2046 Oct. 30 Account Rent Expense ACCOUNT NO. 53 Balance Date Item Post. Ref. Debit Credit Debit Credit 2016 Oct. 4 Account Utilities Expense ACCOUNT NO. 54 Balance Date Item Post. Ref. Debit Credit Debit Credit 2016 Oct. 27 Account Truck Expense 55 ACCOUNT NO. Balance Date Item Post. Ref. Debit Credit Debit Credit 2046 Oct. 26 Account Miscellaneous Expense ACCOUNT NO. 59 Balance Date Item Post. Ref. Debit Credit Debit Credit 2016 Oct. 27 Debit Balances Credit Balances Cash Accounts Receivable 3331 Feedback Check My Wor 3. The trial balance is prepared from the ending balances of the ledger accounts. Be careful to put the debit balances in the Debit column and the credit balances in the Credit column. Remember the trial balance column totals should be equal 4. Determine the excess of revenues over expenses for October 5. Can you think of any reason why the amount determined in (4) might not be the net income for October? 1. Fees earned includes some fees earned in the month of October that have not been received 2. Utilities expense includes expenses incurred for the month of October than have not yet been paid. 3. Some supplies may have been used during October but no supplies expense has been recorded 4. Additions to capital has been wrongly recorded as drawings Fondad MW 4. Calculate Revenues Expenses - Net Income

Answer & Explanation Solved by verified expert

See Answer