Instructions On November 1, 2019, Lexi 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. $27,500. 1 Paid rent for period of November 1 to end of month, $3,600 6 Purchased office equipment on account. $12.770. 8 Purchased a truck for $31,400 paying $6,200 cash and giving a note payable for the remainder. 10 Purchased supplies for cash, $1,800. 12 Received cash for job completed. $8,800 15 Paid annual premiums on property and casualty insurance, $3,000. 23 Recorded jobs completed on account and sent invoices to customers, $12,470. 24 Received an invoice for truck expenses, to be paid in November, $1,200 Enter the following transactions on Page 2 of the two-column journal Nov 29 Paid utilities expense, $3,460 29 Paid miscellaneous expenses, $1,550 30 Received cash from customers on account. $8,900 30 Paid wages of employees, $4,150 30 Paid creditor a portion of the amount owed for equipment purchased on November 6, 56.440 30 Paid dividends, $2,100 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. Boat (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, 2019. 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 CHART OF ACCOUNTS Heritage Designs General Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 16 Equipment 18 Truck REVENUE 41 Fees Earned EXPENSES 51 Wages Expense 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 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. JOURNAL DATE DESCRIPTION PAGE 1 PAGE 3 ACCOUNTING EQUATION POST REY DEBIT CREDIT ASSETS I LIABILITIES EQUITY eBook Show Me How 14 DATE DESCRIPTION JOURNAL PAGE 1 PAGE 2 ACCOUNTING EQUATION POST REP DEBIT CREDIT ASSETS LIABILITIES EQUITY I Journal 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. DATE DESCRIPTION JOURNAL PAGE 1 PAGE 2 ACCOUNTING EQUATION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 2. Bost (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. Account: Cash Account: Accounts Receivable Account: Supplies Account: Prepaid Insurance Account: Equipment Account Truck Account Notes Payable Account: Accounts Payable Account: Common Stock Account: Dividends Account: Fees Earned Account: Wages Expense Account: Rent Expense Account: Utilities Expense Account: Truck Expense Account: Miscellaneous Expense LEDGER Account No. 11 Account No. 12 Account No. 13 Account No. 14 Account No. 16 Account No. 18 Account No. 21 Account No. 22 Account No. 31 Account No. 33. Account No. 41 Account No. 51 Account No. 53 Account No. 54 Account No. 55 Account No. 59 Unadjusted Trial Balance 3. Prepare an unadjusted trial balance for Heritage Designs as of November 30, 2019 1 Cash Accounts Receivable 3Supplies *Prepaid Insurance 3 Equipment Truck 7 Notes Payable Accounts Payable Common Stock 10 Retained Earnings 11 Dividends 12 Fees Earned 13 Wages Expense Heritage Designs UNADJUSTED TRIAL BALANCE November 30, 2019 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3. Supplies 4 Prepaid Insurance 5 Equipment 6 Truck 7 Notes Payable Accounts Payable 9 Common Stock 10 Retained Earnings 11 Dividends 12 Fees Earned 13 Wages Expense 14 Rent Expense 15 Utilities Expense 16 Truck Expense 17 Miscellaneous Expense 18 Totals Heritage Designs UNADJUSTED TRIAL BALANCE November 30, 2019 ACCOUNT TITLE DEBIT CREDIT Final Question 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? Because necessary adjustment to expenses, like depreciation has not been made. Because the dividends are declared but not paid. Because the cash balance is incorrect. Because the closing inventory balance is missing