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 period of June 1 to end of 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 job completed, $12,200. 15 Paid annual premiums on property and casualty insurance, $3,600. 23 Recorded jobs completed on account and sent invoices to customers, $11,900. 24 Received an invoice for van expenses, to be paid in June, $1,500. Enter the following transactions on Page 2 of the two-column journal: June 29 Paid utilities 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. Required: 1. Journalize each transaction in a two-column journal beginning on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the post reference numbers until you have posted the entry to the general ledger in part 2.) 2. Post (in chronological order) the journal to a ledger of four-column accounts, inserting appropriate posting references in both the journal and the ledger 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?

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 period of June 1 to end of 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 job completed, $12,200. 15 Paid annual premiums on property and casualty insurance, $3,600. 23 Recorded jobs completed on account and sent invoices to customers, $11,900. 24 Received an invoice for van expenses, to be paid in June, $1,500. Enter the following transactions on Page 2 of the two-column journal: June 29 Paid utilities 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. Required: 1. Journalize each transaction in a two-column journal beginning on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the post reference numbers until you have posted the entry to the general ledger in part 2.) 2. Post (in chronological order) the journal to a ledger of four-column accounts, inserting appropriate posting references in both the journal and the ledger 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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Topic Video

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 period of June 1 to end of 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 job completed, $12,200.
	15	Paid annual premiums on property and casualty insurance, $3,600.
	23	Recorded jobs completed on account and sent invoices to customers, $11,900.
	24	Received an invoice for van expenses, to be paid in June, $1,500.

Enter the following transactions on Page 2 of the two-column journal:

June	29	Paid utilities 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.

	Required:
1.	Journalize each transaction in a two-column journal beginning on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the post reference numbers until you have posted the entry to the general ledger in part 2.)
2.	Post (in chronological order) the journal to a ledger of four-column accounts, inserting appropriate posting references in both the journal and the ledger 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?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 5 steps with 23 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.