Journal Entries and Trial Balance 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, $24,800. 4. Paid rent for period of June 4 to end of month, $2,410. 6. Purchased a used truck for $21,000, paying $2,000 cash and giving a note payable for the remainder. 8. Purchased equipment on account, $9,670. 10. Purchased supplies for cash, $1,660. 12. Paid annual premiums on property and casualty insurance, $3,720. 15. Received cash for job completed, $10,420. Enter the following transactions on Page 2 of the two-column journal: 23. Paid creditor a portion of the amount owed for equipment purchased on June 13, $3,450. 24. Recorded jobs completed on account and sent invoices to customers, $11,850. 25. Received an invoice for truck expenses, to be paid in July, $1,090. 26. Paid utilities expense, $1,240. 27. Paid miscellaneous expenses, $450. 28. Received cash from customers on account, $4,960. 29. Paid wages of employees, $3,300. 30. Withdrew cash for personal use, $2,750. 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 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 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 2019 June 1 Cash Kris Storey, Capital June 4 Rent Expense Cash June 6 Truck Expense Cash Notes Payable June 8 Equipment Accounts Payable June 10 Supplies Cash June 12 Prepaid Insurance Cash June 15 Accounts Payable Fees Earned General Journal Page 2 Date Description Post. Ref. Debit Credit 2019 June 23 Accounts Payable Cash June 24 Accounts Receivable Fees Earned June 25 Truck Expense Accounts Payable June 26 Utilities Expense Cash June 27 Miscellaneous Expense Cash June 28 Accounts Receivable Cash June 29 Wages Expense Cash June 30 Kris Storey, Drawing Cash 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 2019 June 1 June 4 June 6 June 10 June 12 June 15 June 23 June 26 June 27 June 28 June 29 June 30

Journal Entries and Trial Balance 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, $24,800. 4. Paid rent for period of June 4 to end of month, $2,410. 6. Purchased a used truck for $21,000, paying $2,000 cash and giving a note payable for the remainder. 8. Purchased equipment on account, $9,670. 10. Purchased supplies for cash, $1,660. 12. Paid annual premiums on property and casualty insurance, $3,720. 15. Received cash for job completed, $10,420. Enter the following transactions on Page 2 of the two-column journal: 23. Paid creditor a portion of the amount owed for equipment purchased on June 13, $3,450. 24. Recorded jobs completed on account and sent invoices to customers, $11,850. 25. Received an invoice for truck expenses, to be paid in July, $1,090. 26. Paid utilities expense, $1,240. 27. Paid miscellaneous expenses, $450. 28. Received cash from customers on account, $4,960. 29. Paid wages of employees, $3,300. 30. Withdrew cash for personal use, $2,750. 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 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 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 2019 June 1 Cash Kris Storey, Capital June 4 Rent Expense Cash June 6 Truck Expense Cash Notes Payable June 8 Equipment Accounts Payable June 10 Supplies Cash June 12 Prepaid Insurance Cash June 15 Accounts Payable Fees Earned General Journal Page 2 Date Description Post. Ref. Debit Credit 2019 June 23 Accounts Payable Cash June 24 Accounts Receivable Fees Earned June 25 Truck Expense Accounts Payable June 26 Utilities Expense Cash June 27 Miscellaneous Expense Cash June 28 Accounts Receivable Cash June 29 Wages Expense Cash June 30 Kris Storey, Drawing Cash 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 2019 June 1 June 4 June 6 June 10 June 12 June 15 June 23 June 26 June 27 June 28 June 29 June 30

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter2: Analyzing Transactions

Section: Chapter Questions

Problem 3PB: On October 1, 2019, Jay Pryor established an interior decorating business, Pioneer Designs. During...

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Journal Entries and Trial Balance

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, $24,800.
	4.	Paid rent for period of June 4 to end of month, $2,410.
	6.	Purchased a used truck for $21,000, paying $2,000 cash and giving a note payable for the remainder.
	8.	Purchased equipment on account, $9,670.
	10.	Purchased supplies for cash, $1,660.
	12.	Paid annual premiums on property and casualty insurance, $3,720.
	15.	Received cash for job completed, $10,420.

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

	23.	Paid creditor a portion of the amount owed for equipment purchased on June 13, $3,450.
	24.	Recorded jobs completed on account and sent invoices to customers, $11,850.
	25.	Received an invoice for truck expenses, to be paid in July, $1,090.
	26.	Paid utilities expense, $1,240.
	27.	Paid miscellaneous expenses, $450.
	28.	Received cash from customers on account, $4,960.
	29.	Paid wages of employees, $3,300.
	30.	Withdrew cash for personal use, $2,750.

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 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 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
2019
June 1	Cash
	Kris Storey, Capital
June 4	Rent Expense
	Cash
June 6	Truck Expense
	Cash
	Notes Payable
June 8	Equipment
	Accounts Payable
June 10	Supplies
	Cash
June 12	Prepaid Insurance
	Cash
June 15	Accounts Payable
	Fees Earned

General Journal	Page 2
Date	Description	Post. Ref.	Debit	Credit
2019
June 23	Accounts Payable
	Cash
June 24	Accounts Receivable
	Fees Earned
June 25	Truck Expense
	Accounts Payable
June 26	Utilities Expense
	Cash
June 27	Miscellaneous Expense
	Cash
June 28	Accounts Receivable
	Cash
June 29	Wages Expense
	Cash
June 30	Kris Storey, Drawing
	Cash

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
2019
June 1
June 4
June 6
June 10
June 12
June 15
June 23
June 26
June 27
June 28
June 29
June 30

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