Journal Entries and Trial Balance On October 1, 20Y6, 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, $18,000. 4. Paid rent for period of October 4 to end of month, $3,000. 10. Purchased a used truck for $23,750, paying $3,750 cash and giving a note payable for the remainder. 13. Purchased equipment on account, $10,500. 14. Purchased supplies for cash, $2,100. 15. Paid annual premiums on property and casualty insurance, $3,600. 15. Received cash for job completed, $8,950. Enter the following transactions on Page 2 of the two-column joumal. 21. Paid creditor a portion of the amount owed for equipment purchased on October 13,$2,000. 24. Recorded jobs completed on account and sent invoices to customers, $14,150. 26. Received an invoice for truck expenses, to be paid in November, $700. 27. Paid utilities expense, $2,240. 27. Paid miscellaneous expenses, $1,100. 29. Received cash from customers on account, $7,600. 30. Paid wages of employees, $4,800. 31. Withdrew cash for personal use, $3,500. 1. Journalize 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. (Do not insert the account numbers in the journal at this time.) Journal entry explanations may be omitted. 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 Jay Pryor, Capital 32 Jay Pryor, Drawing 41 Fees Earned 51 Wages Expense 53 Rent Expense 54 Utilities Expense 55 Truck Expense 59 Miscellaneous Expense 3. Prepare an unadjusted trial balance for Pioneer Designs as of October 31,20Y. For those boxes in which no entry is required, leave the box blank. 4. Determine the excess of revenues over expenses for October. 5. Can you think of any reason why the amount determined in (4) might not be the net income for October? 1. Fees earned includes some fees earned in the month of October that have not been received. 2. Utilities expense includes expenses incurred for the month of October than have not yet been paid. 3. Some supplies may have been used during October but no supplies expense has been recorded. 4. Additions to capital has been wrongly recorded as drawings