Instructions On November 1, 20Y9, 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 Lexi transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $27,500. Paid rent for period of November 1 to end of month, $3,600 Purchased office equipment on account, $12,770. Purchased a truck for $31,400 paying $6,200 cash and giving a note payable for the remainder. Purchased supplies for cash, $1,800. 10 12 15 23 Received cash for job completed, $8,800. Paid annual premiums on property and casualty insurance, $3,000. Recorded jobs completed on account and sent invoices to customers, $12,470. Received an invoice for truck expenses, to be paid in November, $1,200. 24 Instructions Enter the following transactions on Page 2 of the two-column journal: Nov. 29 29 30 30 30 30 Paid utilities expense, $3,460. Paid miscellaneous expenses, $1,550. Received cash from customers on account, $8,900. Paid wages of employees, $4,150. Paid creditor a portion of the amount owed for equipment purchased on November 6, $6,440. 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. 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, 2049. 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? 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. PAGE 1 PAGE 2 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Ledger 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. LEDGER Account: Cash Account No. 11 Account: Accounts Receivable Account No. 12 Account: Supplies Account No. 13 Account: Prepaid Insurance Account: Equipment Account: Truck Account: Notes Payable Account: Accounts Payable Account: Common Stock Account: Dividends Account: Fees Earned 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 Account: Wages Expense Account: Rent Expense Account: Utilities Expense Account: Truck Expense Account: Miscellaneous Expense Unadjusted Trial Balance 3. Prepare an unadjusted trial balance for Heritage Designs as of November 30, 2049 Heritage Designs UNADJUSTED TRIAL BALANCE November 30, 2049 ACCOUNT TITLE DEBIT CREDIT Cash 2 Accounts Receivable 3 Supplies 4 Prepaid Insurance 5 Equipment 6 Truck 7 Notes Payable 8 9 Accounts Payable Common Stock 10 Retained Earnings 11 Dividends 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 the cash balance is incorrect. Because necessary adjustment to expenses, like depreciation has not been made. Because the closing inventory balance is missing. Because the dividends are declared but not paid