Instructions On November 1, 2049, Lexi Martin established an interior decorating business, Heritage Designs. During the month, Lexi completed the following transactions related to the business: Nov. 1 1 6 8 10 12 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, $4,000. Purchased office equipment on account, $15,000. 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. 15 Paid annual premiums on property and casualty insurance, $2,400. 23 Recorded jobs completed on account and sent invoices to customers, $22,300. 24 Received an invoice for truck expenses, to be paid in November, $1,250. Enter the following transactions on Page 2 of the two-column journal: Nov. 29 29 30 Paid utilities expense, $4,500. 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, $3,000. 30 30 30 Paid dividends, $2,500. 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. Chart of Accounts CHART OF ACCOUNTS Heritage Designs General Ledger ASSETS REVENUE 41 Fees Earned 11 Cash 12 Accounts Receivable 13 Supplies EXPENSES 14 Prepaid Insurance 51 Wages Expense 53 Rent Expense 16 Equipment 18 Truck 54 Utilities Expense 55 Truck Expense LIABILITIES 59 Miscellaneous Expense 21 Notes Payable 22 Accounts Payable EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends 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 debite 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 JOURNAL ACCO DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LEDGER Account: Cash DATE POST. REF. DEBIT CREDIT DEBIT 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 3. Prepare an unadjusted trial balance for Heritage Designs as of November 30, 2049 Heritage Designs UNADJUSTED TRIAL BALANCE November 30, 2019 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable Supplies Prepaid Insurance 5 Equipment 6 Truck 7 Notes Payable 8 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 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? O Because the dividends are declared but not paid. Because the closing inventory balance is missing. O Because the cash balance is incorrect. O Because necessary adjustment to expenses, like depreciation has not been made