Journal Entries and Tral Balance On October 1, 2014, 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 in exchange for common stock, $26,900, 4. Paid rent for period of October 4 to end of month, $2,610. 10. Purchased a used truck for $22,000, paying $2,000 cash and giving a note payable for the remaindet, 13. Purchased equipment on account, $10,490. 14. Purchased supplies for cash $1,800 15. Paid annual premiums on property and casualty Insurance, $4,040. 15. Received cash for job completed, $11,300, Enter the following transactions on Page 2 of the two-column Journal: 21. Pald creditor a portion of the amount owed for equipment purchased on October 13, 53,740, 24. Recorded jobs completed on account and sent invoices to customers, $12,860. 26. Received an invoice for truck expenses, to be paid in November $1,180. 27. Paid utilities expense, $1,350. 27 Paid miscellaneous expenses, 5480 29. Received cash from customers on account, $5,380. 30. Paid wages of employees, $3,580. 31. Pald dividends, $2,990. General Journal Date Page 1 Description Post. Ref. Debit Credit 2014, Oct. 1 Oct. 4 Oct. 10 Oct. 13 Oct. 14 Oct. 15-Insurance Oct. 15-Fees General Journal Date Page 2 Description Post. Ref. 2014, Debit Credit Oct. 21 Oct. 24 Oct. 26 Oct. 27-Utilities Oct. 27-Misc. Oct. 29 Oct. 30 Oct. 31 2. Post in chronological order) the journal to a ledger of four-column accounts, inserting appropriate posting references as each item is posted. Extend me wices to the appropriate balance columns after each transaction is posted. If an amount box does not require an entry leave it blank General Ledger Accounti Cash Account No. 11 Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 1 Oct. 4 Oct. 10 Oct. 14 Oct. 15 Oct. 15 Oct. 21 Oct. 27 Oct. 27 Oct. 29 Oct. 30 Oct. 31 Account: Accounts Receivable Account No. 12 Date Balance Item Post. Ref. Debit Credit Debit 2014, Credit Oct. 24 Oct. 29 Account: Supplies Account No. 13 Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 14 Account: Prepaid Insurance Account No. 14 Balance Date Item Post. Ref. Debit Credit Debit Credit 20Y4, Oct. 15 Account: Equipment Account No. 16 Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 13 Account: Truck Account No. 18 Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 10 Account: Notes Payable Account No. 21 Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 10 Account: Accounts Payable Account No. 22 Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 13 Oct. 21 Oct. 26 Account: Common Stock Account No. 31 Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 1 Account: Dividends Account No. 33 Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 31 Account: Fees Earned Account No. 41 Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 15 Oct. 24 Account: Wages Expense Account No. 51 Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 30 Account: Rent Expense Account No. 53 Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 4 Account: Utilities Expense Account No. 54 Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 27 Account: Truck Expense Account No. 55 Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 26 Account: Miscellaneous Expense Account No. 59 Balance Debit Debit Date Credit Item Credit Post. Ref. 2014, Oct. 27 Pioneer Designs Unadjusted Trial Balance October 31, 2014 Account No. Debit Balances Credit Balances Totals 4. Determine the excess of revenues over expenses for October 5. Why the amount determined in above might not be the net income for October? 1. Because the dividends are declared but not paid 2. Because the cash balance is incorrect. 3. Because the closing inventory balance is missing 4. Because necessary adjustment to expenses, like depreciation has not been made
