Journal Entries and Trial Balance On October 1, 20Y4, 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, $16,300. 4. Paid rent for period of October 4 to end of month, $1,580. 10. Purchased a used truck for $14,000, paying $1,000 cash and giving a note payable for the remainder. 13. Purchased equipment on account, $6,360. 14. Purchased supplies for cash, $1,090. 15. Paid annual premiums on property and casualty insurance, $2,450. 15. Received cash for job completed, $6,850. Enter the following transactions on Page 2 of the two-column journal: 21. Paid creditor a portion of the amount owed for equipment purchased on October 13, $2,270. 24. Recorded jobs completed on account and sent invoices to customers, $7,790. 26. Received an invoice for truck expenses, to be paid in November, $720. 27. Paid utilities expense, $820. 27 Paid miscellaneous expenses, $290. 29. Received cash from customers on account, $3,260. 30. Paid wages of employees, $2,170. 31. Paid dividends, $1,810. Required: 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 31 Common Stock 12 Accounts Receivable 33 Dividends 13 Supplies 41 Fees Earned 14 Prepaid Insurance 51 Wages Expense 16 Equipment 53 Rent Expense 18 Truck 54 Utilities Expense 21 Notes Payable 55 Truck Expense 22 Accounts Payable 59 Miscellaneous Expense General Journal Page 1 Date Description Post. Ref. Debit Credit 20Y4, Oct. 1 Oct. 4 Oct. 10 Oct. 13 Oct. 14 Oct. 15-Insurance Oct. 15-Fees General Journal Page 2 Date Description Post. Ref. Debit Credit 2014, 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 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 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 Balance Debit Credit Item Post. Ref. Debit Credit Date 2014, Oct. 24 3 Oct. 29 Account: Supplies Account No. 13 Balance Debit Credit Date Item Post. Ref. Debit Credit 2014, Oct. 14 Account: Prepaid Insurance Account No. 14 Balance Debit Credit Date Item Post. Ref. 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 Debit Credit Date Item Post. Ref. Debit Credit 2014, Oct. 10 Account: Notes Payable Account No. 21 Balance Debit Credit Date Item Post. Ref. Debit Credit 2014, Oct. 10 Account: Accounts Payable Account No. 22 Balance Debit Credit Date Item Post. Ref. Debit Credit 20Y4, Oct. 13 Oct. 21 Oct. 26 Account: Common Stock Account No. 31 Balance Debit Date Item Post. Ref. Debit Credit Credit 20Y4, 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 2084, Oct. 15 Oct. 24 Account: Wages Expense Account No. 51 Balance Debit Credit Date Item Post. Ref. Debit Credit 2014, Oct. 30 Account: Rent Expense Account No. 53 Balance Debit Credit Date Item Post. Ref. Debit Credit 2014, Oct. 4 Account: Utilities Expense Account No. 54 Balance Debit Credit Item Post. Ref. Debit Credit Date 2014, Oct. 27 Account: Truck Expense Account No. 55 Balance Debit Credit Date Item Post. Ref. Debit Credit 2014, Oct. 26 Account: Miscellaneous Expense Account No. 59 Balance Date Item Post. Ref. Debit Credit Debit Credit 2084, Oct. 27 3. Prepare an unadjusted trial balance for Pioneer Designs as of October 31, 20Y4. 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 Debit Balances Credit Balances No. 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