1 6 on November 1, 2010, Lox Martin established an interior decorating business, Heritage Designs. During the month, Lexi completed the following transactions related to the business Nov 1 Lexi transferred cash from a personal bank account to an account to be used for the business in exchange for common stock. $50,000 Paid rent for period of November 1 to end of month, 54,000 Purchased office equipment on account, $15,000 8 Purchased a truck for $38,500 paying $5,000 cash and giving a note payable for the remainder. Purchased supplies for cash, $1,750 Received cash for job completed, $11,500 Paid annual premiums on property and casualty insurance $2.400 23 Recorded jobs completed on account and sent invoices to customers. $22,300 Received an invoice for truck expenses, to be paid in November, 1.250. 10 12 15 24 Enter the following transactions on Page 2 of the two column jourant Nov. 29 Pald utilities expense, S4,500 29 Paid miscellaneous expenses. $1,000 Received cash from customers on account, $9,000 Paid wages of employees, $6,800 Paid creditor a portion of the amount owed for equipment purchased on November 6. 63.000. Paid dividends, $2.500 8 8 8 8 8 8 Previou 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.) Refer to the Chart of Accounts for exact wording of account titles 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 Heritage Designs as of November 30, 20Y9. 4. Determine the excess of revenues over expenses for November 5. Can you think of any reason why the amount determined in (4) might not be the net income for November? CHART OF ACCOUNTS Heritage Designs General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 13 Supplies EXPENSES 14 Prepaid Insurance 51 Wages Expense 16 Equipment 18 Truck 53 Rent Expense 54 Utilities Expense 55 Truck Expense 59 Miscellaneous Expense LIABILITIES 21 Notes Payable 22 Accounts Payable EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends DATE DESCRIPTION POST: REF DESIT CREDIT ASSETS LIABILITIES EQUITY 1 Nov 01 Cash 11 50,00000 + 2 Common Stock 31 50,000.00 1 1 53 4,000.00 . 4 11 4,000.00 . 16 15,000.00 + 22 15,000.00 7 Nov.01 Rent Expense Cash Nov. 06 Equipment Accounts Payable Nov. 08" Truck Notes Payable Cash Nov 10 Supplies Cash 18 38,500.00 + 21 33.500.00 11 5,000.00 10 1.750.00 + 13 11 11 1,750.00 12 Nov 12 Cash 11.500.00 f 11 41 11,500.00 1 Fees Earned Nov 15" Prepaid Insurance 14 14 2.400.00 15 Cash 11 2.400.00 . 10 12 22,300.00 1 Nov 23 Accounts Recevable Fees Earned 17 41 22,500.00 1 18 Nov 24 Truck Expense 55 1.250.00 1 Accounts Payable 22 1.250,00 2. Post din chronological onder) the fenomai to a design of tow.column account, inserting appropriate penting references in to the forward to becojer as each town is posted. Extend the balances to the appropriate balancer columns after each transaction de posted How does, scodile work? LEDGER Score: 63/376 Account Cath Account No. 1 DATE ITEM POSTE DET CREDIT BALANCE DET 50,000.00 CREDIT 000 Nov 01 50,000.00 2 Nov 01 46,000.00 0.00 Nov 06 4,000.00 15,000.00 175000 000 31,000.00 29,250.00 . Nov 08 000 5 Nov. 10 11,500.00 40.750.00 0.00 Nov 12 Nov 15 Nov 23 Nov 24 10 Nov 29 11 Nov 29 13 Nox 30 Previous Check My Work Account Accounts Receivable Account No. 12 DATE TEM POST REF DESIT CREDIT BALANCE DERIT CROIT 1 2 Account Supplies Account No. 1) DATE ITEM POST REF DET MANCE CREDIT DEBIT CREDIT + Account: Prepaid insurance Account No. 14 DATE ITEM BALANCE POSTRE DENT CORT OCHT CREDIT 1 Account: Equipment Account No. 16 DATE ITEM POST REF DEBIT CREDIT BALANCE DET CREDIT Account Truck Account No. 18 DATE ITEM POST. REF DEBIT CREDIT BALANCE DERIT CREDIT Account Notes Payable Account No. 21 DATE ITEM HALKE POST, RIF DEBIT CRENT DEHIT CREDIT Account Accounts Payable Account No. 22 DATE ITEM BALANCE POST. REF DEBIT CREDIT DEBIT CREDIT 1 Account: Common Stock Account No. 11 HALANCE DATE ITEM POST. REF DET CREDIT DEBIT CREDIT Account: Dividends Account No. 33 BALANCE DATE ITEM POST. REF DERIT CREDIT DERIT CREDIT 1 Account Fees Eamed Account No. 41 MALANCE DATE ITEM POST REF DEBIT CREDIT DERIT CREDIT Account Wages Expense Account No. 51 DATE ITEM POST REF DEBIT CREDIT BALANCE DERIT CREDIT Account Rent Expense Account No. 53 DATE ITEM POST. REF DEBIT CREDIT BALANCE DEBIT CREDIT Account Utilities Expense Account No. 54 DATE ITEM POSTRE DERIT CREDIT BALANCE DEBIT CREDIT Account Truck Expense Account No. 55 DATE ITEM POST. REY DEBIT CREDIT BALANCE + DEBIT CREDIT Account: Miscellaneous Expense Account No. 59 DATE ITEM POST. REF DEBIT CREDIT BALANCE 1 DEBIT CREDIT