Designs. During the month, Kim completed the following transactions related to the business.
July. 1 Kim transferred cash from a personal bank account to an account to be used for the business, $ 20,700.
4 Paid rent for period of April 4 to end of month, $ 2,010.
10 Purchased a truck for $ 17,000, paying $ 2,000 cash and giving a note payable for the remainder.
13 Purchased equipment on account, $ 8,070.
14 Purchased supplies for cash, $ 1,390.
15 Paid annual premiums on property and casualty insurance, $ 3,110.
15 Received cash for job completed, $ 8,690.
21 Paid creditor a portion of the amount owed for equipment purchased on April 13, $ 2,880.
24 Recorded jobs completed on account and sent invoices to customers, $ 9,890.
26 Received an invoice for truck expenses, to be paid in May, $ 910.
27 Paid utilities expense, $ 1,040.
27 Paid miscellaneous expenses, $ 370.
29 Received cash from customers on account, $ 4,140.
30 Paid wages of employees, $ 2,750.
31 Withdrew cash for personal use, $ 2,300.
Enter debits before credits and in chart of account order from there.
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. Journal entry explanations may be omitted.
11 Cash 31 Kim Wheeler.Capital
12 Account Receivable 32 Kim Wheeler Drawing
12 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 Account 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 Photogenic Designs as of July 31, 2012. For those boxes in which no entry is required, leave the box blank. The first two are filled in as an example.
4 Determine the excess of revenues over expenses for April
5 Can you think of any reason why the amount determined in (4) might not be the net income for April?
Click here for the SOLUTION