chapter 2

Journal Entries and Trial Balance On October 1, 2016, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business: Oct. 1. Jay transferred cash from a personal bank account to an account to be used for the business, $23,800. 4. Paid rent for period of October 4 to end of month, $2,310. 10. Purchased a used truck for $20,000, paying $2,000 cash and giving a note payable for the remainder. 13. Purchased equipment on account, $9,280. 14. Purchased supplies for cash, $1,590. 15. Paid annual premiums on property and casualty insurance, $3,570. 15. Received cash for job completed, $10,000. Enter the following transactions on Page 2 of the two-column journal: 21. Paid creditor a portion of the amount owed for equipment purchased on October 13, $3,310. 24. Recorded jobs completed on account and sent invoices to customers, $11,380. 26. Received an invoice for truck expenses, to be paid in November, $1,050. . 27. Paid utilities expense, $1,190. 27. Paid miscellaneous expenses, $430. 29. Received cash from customers on account, $4,760. 30. Paid wages of employees, $3,170. 31. Withdrew cash for personal use, $2,640. 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. If an amount box does not require an entry, leave it blank. 11 Cash 31 Jay Pryor, Capital 12 Accounts Receivable 32 Jay Pryor, 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 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. Rer Debit Credit Debit Credit 20YG Out. 1 Oct. 4 Oct. 10 Oct. 14 Oct. 15 Oct. 15 Oct. 21 Oct. 27 Oct. 27 Ort. 29 Oct. 30 Oct. 31 Account Accounts Receivable ACCOUNT NO. 12 Balance Data Item Post. Ref. Debit Credit Debit Credit 2016 Oct. 24 Oct.29 Account Supplies ACCOUNT NO 13 Balance Date Item Pest. Ref. Debit Credit Debit Credit 2016 Oct. 14 Account Prepaid Insurance ACCOUNT NO. 14 Balance Date Item Pest. Ref. Debit Credit Debit Credit 2016 Oct, 15 Account Equipment ACCOUNT NO. 16 Balance Date Item Post. Ret . . Debit Credit Debit Credit 2016 Oct. 13 Account Truck ACCOUNT NO. 18 Balance Date Item Post. Ref. Debit Credit Debit Credit 2016 Oct. 10 O Account Notes Payable ACCOUNT NO. 21 Balance Date Item Post. Ref. Debit Credit Debit Credit 2016 Oct. 10 O I Account Accounts Payable ACCOUNT NO. 22 Balance Date Item Post. Ref. . . Debit Credit Debit Credit 2016 Oct. 13 Oct. 21 III Oct. 26 Account Jay Pryor, Capital ACCOUNT NO. 31 Balance Date Item Post. Ref. Debit Credit Debit Credit 2016 Oct. 1 Account Jay Pryor, Drawing ACCOUNT NO. 32 Balance Date Item Post. Ref. Debit Credit Debit Credit 2016 Oct. 31 Account Fees Earned ACCOUNT NO. 41 Balance Date Item Post. Ref. . Debit Credit Debit Credit 2016 Oct. 15 Oct. 24 Account Wages Expense ACCOUNT NO. 51 Balance Date Item Post. Ref. Debit Credit Debit Credit 2016 Oct. 30 1 O Account Rent Expense ACCOUNT NO. 53 Balance Date Item Post. Ref. Debit Credit Debit Credit 2046 Oct. 4 Account Utilities Expense ACCOUNT NO. 54 Balance Date Item Post. Ref. Debit Credit Debit Credit 2016 Oct. 27 Account Truck Expense ACCOUNT NO. 55 Balance Date Item Post. Ref. Debit Credit Debit Credit 2016 Oct. 26 Account Miscellaneous Expense ACCOUNT NO. 59 Balance Date Item Post. Ref. Debit Credit Debit Credit 2016 Oct. 27