Journal Entries and Trial Balance On June 1, 2019, Kris Storey established an interior decorating business, Eco-Centric Designs. During the month, Kris completed the following transactions related to the business: June 1 Kris transferred cash from a personal bank account to an account to be used for the business, $27,200. Paid rent for period of June 4 to end of month, $2,640 Purchased a used truck for $23,000, paying $2,000 cash and giving a note payable for the remainder 8. Purchased equipment on account, $10,610. 4 6. 10. Purchased supplies for cash, $1,820 12. Paid annual premiums on property and casualty insurance, $4,080. 15. Received cash for job completed, $11,420. Enter the following transactions on Page 2 of the two column journal: 23. Paid creditor a portion of the amount owed for equipment purchased on June 13, $3,780. 24. Recorded jobs completed on account and sent invoices to customers, $13,000 25. Received an invoice for truck expenses, to be paid in July, $1,200. 26 Pald utilities expense, 51,360. 27. Paid miscellaneous expenses, $490. Received cash from customers on account, 55,440. 29. Paid wages of employees, 53,620. 30. withdrew cash for personal use, $3,020 Required: 1. Joumise each transaction in a two-column journal beginning on page 1, referring to the following chart of accounts in selecting the accounts to be debied and credited. (Do not insert the account numbers in the youmal this time.) Journal entry explanations may be omitted for a compound transaction, if an amount box does not require an entry leave it blank. 11 Cash 31 Kris Storey, Capital 12 Accounts Receivable 32 Kris Storey, Drawing 41 Fees Earned 51 Wages Expense 14 Prepaid Insurance 16 Equipment 18 Truck 53 Rent Expense 54 Utilities Expense 55 Truck Expense 59 Miscellaneous Expense 21 Notes Payable 22 Accounts Payable General Journal Page 1 Credit Date Description Post Ret Debit 2019 June 1 11 27,200 31 27,200 Kris Storey, Capital Rent Expense 53 Sune 4 2,640 Cash 11 2,640 Truck 18 23,000 11 2,000 59 22 Accounts Payable Page 1 General Journal Debit Credit Post. Ref. Date Description 2019 11 27,200 June 1 Cash 31 27,200 Kris Storey, Capital 53 2,640 June 4 Rent Expense Cash 11 2,640 June 6 Truck 18 23,000 Cash 11 2,000 Notes Payable 21 21,000 June 8 Equipment 16 10,610 Accounts Payable 22 10,610 June 10 Supplies 13 1,820 Cash 11 June 12 Prepaid Insurance 1,820 14 4,080 Cash 11 June 15 Cash 4,080 11 11,420 Fees Earned 41 11,420 Page 2 General Journal Debit Post. Ref. Credit Date Description 2019 June 23 Accounts Payable 22 3,780 Cash 11 3,780 June 24 Accounts Receivable 12 13,000 Fees Earned 41 13,000 June 25 Truck Expense 55 1,200 Accounts Payable 22 June 26 Utilities Expense 1,200 54 1,360 Cash 11 June 27 Miscellaneous Expense 1,360 59 Cash 490 June 28 11 Cash 490 11 Accounts Receivable 5,440 June 29 Wages Expense 12 5,440 Cash 51 3,620 June 30 Kris Storey, Drawing 11 Cash 32 3,620 3,020 11 2. Post (in chronological order) the journal to a leder 3,020 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. Ref. Debit Credit Debit Credit 2019 June 1 31 27,200 27,200 June 4 53 2,640 24,560 June 6 18 2,000 22,560 June 10 13 20,740 June 12 14 4,080 16,660 June 15 41 11,420 28.080 June 23 22 3,780 24,300 June 26 3,100 21,200 20,710 June 22 59 June 28 12 5,440 26,150 June 29 51 3,620 22,530 Sune 30 32 3,020 19,510 12 ACCOUNT NO. Account Accounts Receivable Balance Credit Item Date Post. Ref. Debit Debit Credit 2018 June 24 41 13,000 13,000 June 28 11 5,440 7,560 Account Supplies ACCOUNT NO. 13 Balance Date Item Post. Ref. Debit Credit Debit Credit 2019 June 10 11 1,820 1,820 Account Prepaid Insurance ACCOUNT NO. 14 Balance Date Item Post. Ref. Debit Credit Debit Credit 2019 June 12 11 4,080 4,080 Account Equipment ACCOUNT NO. 16 Balance Date Item Post. Ref. Debit Credit Debit Credit 2019 June 8 22 10,610 10,610 Account Truck ACCOUNT NO. 18 Balance Date Item Post. Ref. Debit Credit Debit Credit 2019 June 6 11 2,000 2,000 Account Notes Payable ACCOUNT NO. 21 Balance Date Item Post. Ref. Debit Credit Debit 2019 Credit June 6 18 21,000 21,000 22 ACCOUNT NO. Account Accounts Payable Balance Date Item Post. Ref. Debit Credit Credit Debit 2019 June 8 16 10,610 10,610 June 23 11 3,780 6,830 June 25 55 1,200 8,030 Account Kris Storey, Capital ACCOUNT NO. 31 Balance Date Item Post. Ref. Debit Credit Debit Credit 2019 June 1 11 27,200 27,200 Account Kris Storey, Drawing ACCOUNT NO. 32 Balance Date Item Post. Ref. Debit Credit Debit Credit Check My Work ACCOUNT NO. 32 Account Kris Storey, Drawing Balance Debit Date Credit Debit Item Credit Post. Ref. 2019 June 30 3,020 3,020 Account Fees Earned ACCOUNT NO. 41 Balance Date Item Post. Ref. Debit Credit Debit Credit 2019 June 15 11 11,420 11,420 June 24 12 13,000 24,420 Account Wages Expense ACCOUNT NO. 51 Balance Date Item Post. Ref. Debit Credit Debit 2019 Credit Sune 29 3,620 3,620 ACCOUNT NO 53 Account Rent Expense Balance Date Post. Ref. Debit Debit Item Credit Credit 2019 June 4 11 2,640 2,640 Account Utilities Expense ACCOUNT NO. 54 Balance Date Item Post. Ref. Debit Credit Debit Credit 2019 June 26 11 1,360 1,360 Account Truck Expense ACCOUNT NO. 55 Balance Date Item Post. Ref. Debit Credit Debit Credit 2019 June 25 11 1,200 1,200 Account Miscellaneous Expense ACCOUNT NO 59 Balance Date Item Post. Ref. Debit Credit Debit Credit 2012 June 27 11 490 3. Prepare an unadjusted trial balance for Eco-Centric Designs as of June 30, 2019. For those boxes in which no entry is required, leave the box blank. The first two account titles are filled in as an example, Eco-Centric Designs Unadjusted Trial Balance June 30, 2019 Debit Balances Credit Balances Cash 19,510 Accounts Receivable 7,560 1,820 Supplies Prepaid Insurance 4,080 Equipment 10,610 Truck 2,000 Notes Payable Accounts Payable 21.000 27,200 MY Unadjusted Trial Balance June 30, 2019 Debit Balances Credit Balances Cash 19,510 Accounts Receivable 7,560 Supplies 1,820 Prepaid Insurance 4,080 Equipment 10,610 Truck 2,000 Notes Payable 21,000 Accounts Payable 27,200 Kris Storey, Capital Kris Storey, Drawing 3,020 Fees Earned Wages Expense 24,420 Rent Expense 3,620 Utilities Expense 2,640 Truck Expense 1,360 Miscellaneous Expense 1,200 490 57,910 72,620 4. Determine the excess of revenues over expenses for June. -14,710 5. Can you think of any reason why the amount determined in (4) might not be the net income for June? 1. Fees earned includes some fees earned in the month of June that have not been received. 2. Utilities expense includes expenses incurred for the month of June than have not yet been paid. 3. Some supplies may have been used during June but no supplies expense has been recorded. 4. Additions to capital has been wrongly recorded as drawings. 3