Journal entries and trial 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: October 1. Jay transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $18,00 October 4. Paid rent for period of October 4 to end of month, $3,000. October 10. Purchased a used truck for $23,750, paying $3,750 cash and giving a note payable for the remainder. October 13. Purchased equipment on account. $10,500. October 14. Purchased supplies for cash, $2,100. October 15. Paid annual premiums on property and casualty insurance, $3,600. October 15. Received cash for job completed, $8,950. Enter the following transactions on Page 2 of the two-column journal: Pil creditor a portion of the amount owed for equipment purchased on October 13, $2,000. HWK 2 assignment take frame. bunt and sent invoices to customers, $14,150. Received an invoice for truck expenses, to be paid in November, $700. October 21. October 24, October 26 Rech October 27. Paid utilities expense, $2,240. October 27, Paid miscellaneous expenses, $1.100. October 29. Received cash from customers on account, $7,600, Wages of employees, $4,500. October 31. Paid dividends, $3,500. Required: 1. Journalize and insert the Posting References for each transaction in a two-column journal beginning on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. If an amount box does not require an entry, leave it blank. 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 16 Equipment 18 Truck 21 Notes Payable 22 Accounts Payable 31 Common Stock 33 Dividends 41 Fees Eamed 51 Wages Expense 53 Rent Expense C 54 Unties Expense 55 Truck Expense 59 Miscellaneous Expense General Journal Page 1 Date Description Post. Ref. Debit Credit 2014, October 1 October 4 October 10 October 13 October 14 October 15-Insurance G Bate Pe Re 9 B T Y G H H 9 B 9 0 16 0 B 7 G 6 O Y J HI PB 8 4 0 0 P2 O B 999 10. R T Y e 0 P G H K TA 900 G 3. Prepare an unadjusted trial balance for Pioneer Designs as of October 31, 2014. List all accounts in the order of Assets, Liabilities, Stockholders' equity, Revenues, and Expenses. For those boxes in which no entry is required, leave the box blank. Pioneer Designs Unadjusted Trial Balance October 31, 2014 Account v Debit Balances Credit Balances No. 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 closind nventory balance is missing 4. Because necessary adjustment to expenses, like depreciation has not been made.