On June 1, 2016, Kim Wheeler established an interior decorating business, Intrex Designs. During the month, Kim completed the following transactions related to the business.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Journal Entries and Trial Balance

On June 1, 2016, Kim Wheeler established an interior decorating business, Intrex Designs. During the month, Kim completed the following transactions related to the business.

June 1 Kim transferred cash from a personal bank account to an account to be used for the business, $21,700.
  4 Paid rent for period of June 4 to end of month, $2,100.
  6 Purchased a truck for $18,000, paying $2,000 cash and giving a note payable for the remainder.
  8 Purchased equipment on account, $8,460.
  10 Purchased supplies for cash, $1,450.
  12 Paid annual premiums on property and casualty insurance, $3,260.
  15 Received cash for job completed, $9,110.
  23 Paid creditor a portion of the amount owed for equipment purchased on June 13, $3,020.
  24 Recorded jobs completed on account and sent invoices to customers, $10,370.
  25 Received an invoice for truck expenses, to be paid in July, $950.
  26 Paid utilities expense, $1,090.
  27 Paid miscellaneous expenses, $390.
  28 Received cash from customers on account, $4,340.
  29 Paid wages of employees, $2,890.
  30 Withdrew cash for personal use, $2,410.

Required:

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.) Journal entry explanations may be omitted. For a compound transaction, if an amount box does not require an entry, leave it blank.

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

 

General Journal Page 1
Date Description Post. Ref. Debit Credit
2016        
June 1        
         
June 4        
         
June 6        
         
         
June 8        
         
June 10        
         
June 12        
         
June 15        
         

 

General Journal Page 2
Date Description Post. Ref. Debit Credit
2016        
June 23        
         
June 24        
         
June 25        
         
June 26        
         
June 27        
         
June 28        
         
June 29        
         
June 30        
         

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. Ref. Debit Credit Debit Credit
2016  
June 1            
June 4            
June 6            
June 10            
June 12            
June 15            
June 23            
June 26            
June 27            
June 28            
June 29            
June 30            



Account Accounts Receivable   ACCOUNT NO. 12
  Balance
Date Item Post. Ref. Debit Credit Debit Credit
2016  
June 24            
June 28            



Account Supplies   ACCOUNT NO. 13
  Balance
Date Item Post. Ref. Debit Credit Debit Credit
2016  
June 10            



Account Prepaid Insurance   ACCOUNT NO. 14
  Balance
Date Item Post. Ref. Debit Credit Debit Credit
2016  
June 12            



Account Equipment   ACCOUNT NO. 16
  Balance
Date Item Post. Ref. Debit Credit Debit Credit
2016  
June 8            

 

Account Truck   ACCOUNT NO. 18
  Balance
Date Item Post. Ref. Debit Credit Debit Credit
2016  
June 6            

 

Account Notes Payable   ACCOUNT NO. 21
  Balance
Date Item Post. Ref. Debit Credit Debit Credit
2016  
June 6            

 

Account Accounts Payable   ACCOUNT NO. 22
  Balance
Date Item Post. Ref. Debit Credit Debit Credit
2016  
June 8            
June 23            
June 25            

 

Account Kim Wheeler, Capital   ACCOUNT NO. 31
  Balance
Date Item Post. Ref. Debit Credit Debit Credit
2016  
June 1            

 

Account Kim Wheeler, Drawing   ACCOUNT NO. 32
  Balance
Date Item Post. Ref. Debit Credit Debit Credit
2016  
June 30            

 

Account Fees Earned   ACCOUNT NO. 41
  Balance
Date Item Post. Ref. Debit Credit Debit Credit
2016  
June 15            
June 24            

 

Account Wages Expense   ACCOUNT NO. 51
  Balance
Date Item Post. Ref. Debit Credit Debit Credit
2016  
June 29            

 

Account Rent Expense   ACCOUNT NO. 53
  Balance
Date Item Post. Ref. Debit Credit Debit Credit
2016  
June 4            

 

Account Utilities Expense   ACCOUNT NO. 54
  Balance
Date Item Post. Ref. Debit Credit Debit Credit
2016  
June 26            

 

Account Truck Expense   ACCOUNT NO. 55
  Balance
Date Item Post. Ref. Debit Credit Debit Credit
2016  
June 25            

 

Account Miscellaneous Expense   ACCOUNT NO. 59
  Balance
Date Item Post. Ref. Debit Credit Debit Credit
2016  
June 27          

3.   Prepare an unadjusted trial balance for Intrex Designs as of June 30, 2016. For those boxes in which no entry is required, leave the box blank. The first two account titles are filled in as an example.

Intrex Designs
Unadjusted Trial Balance
June 30, 2016
  Debit Balances Credit Balances
Cash    
Accounts Receivable    
     
     
     
     
     
     
     
     
     
     
     
     
     
     
Totals    

4.  Determine the excess of revenues over expenses for June.

$

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