Now On November 1, 20Y9, Lexi Martin established an interior decorating business, Heritage Designs. During the month, Lexi completed the following transactions related to the business: Lexi transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $26,000 Paid rent for period of November 1 to end of month, $3,800. Purchased office equipment on account, $12,710. Purchased a truck for $30,400 paying $6,100 cash and giving a note payable for the remainder. Purchased supplies for cash, $1,920. 12 Received cash for job completed, 88,300. Paid annual premiums on property and casualty insurance. 10 15 $2,200 Recorded jobs completed on account and sent invoices to customers, $12,220. Nov 30 Received an invoice for truck expenses, to be paid in November, $1,010 Enter the following transactions on Page 2 of the two-column journal: Paid utilities expense, $3,510 Paid miscellaneous expenses, $1,650. Received cash from customers on account, $7,300. 30 Paid wages of employees, 54,550. 30 Paid creditor a portion of the amount owed for equipment purchased on November 6, S6,200. 30 Paid dividends, $2,400 Required: sumalize each transaction in a two-column jouw beginning on Page 1, referring to the chart of acounts in selecting the accounts to be suites and created. (Do not insert the post reference numbers until you have posted the entry to the general ledger in part 2.) Refer to the Chart of Accounts for exact wording of account titles. Poat (in chronological order) the journal to a super of four-column accounts, inserting appropriate posting references in both the journal and the ledger as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted. Prepare an unadjusted tw balance for Heritage Designs as of November 30, 20Y9. Determine the excess of revenues over expenses for November. Can you think of any reason why the amount determined in (4) might not be the net income for November? 1. 4 5 CHART OF ACCOUNTSHeritage Designs General Ledger ASSETS 11 Cash 12 Account Receive 13 Supplies 14 Padinance 16 Event 18 Truck LIABILITIES 21 Notes Payable 22 Accounts Payable EQUITY 31 Common Stock 32 Reading 33 Dividends REVENUE EXPENSES 51 Wapene 53 Rent Expense SA Expense 56 Truck Expense 1. Soumalor each transaction in a two-column cum beginning on Page 1, referring to the chart of accounts in selecting the accounts to be and credits: (Do not insert the post reference numbers until you have posted the entry to the general ledger in part 2.) Refer to the Chart of Accounts for exact wording of account titles. JOU ACCOUNTING EQUATION STT AT TY 2. Pew (in chronological order) the journal to aw of four-column accounts, inserting appropriate posting references in both the journal and the ledger as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted LEDGER NO co Pale 3. Prepare an unedusted to balance for Heritage Designs as of November 30, 2019 Heritage Design URADASTED THE BALANCE Hovember 2009 Clash Prepaid Track Nese As Payable Cock Reading Vos med p Miscellane 4. Determine the excess of manns over expers for November. 5. Can you think of any reason why the amount determined in (4) might not be the net income for November? Becae ecce sincere Because necessary adjustment to expenses, like depreciation has not been made ce the coming to be
