On July 1, 2012, Kim Wheeler established an interior decorating business, Aztec Designs. During the month, Kim completed the following transactions related to the business: July 1. Kim transferred cash from a personal bank account to an account to be used for the business in exchange for capital stock, $21,000. 4. Paid rent for period of July 4 to end of month, $2,750. 10. Purchased a used truck for $18,000, paying $4,000 cash and giving a note payable for the remainder. 13. Purchased equipment on account, $9,000. 14. Purchased supplies for cash, 1,500. 15. Paid annual premiums on property and casualty insurance, $3,600. 15. Received cash for job completed, $12,000. 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 July 13, $2,000. 24, Recorded jobs completed on account and sent invoices to customers, $9,800. 26. Received an invoice for truck expenses, to be paid in August, $700. 27. Paid utilities expense, $1,000. 27. Paid miscellaneous expenses, $300. 29. Received cash from customers on account, $4,600. 30. Paid wages of employees, $2,800. 31. withdrew cash for personal use, $2,500. Instructions 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. 11 Cash 31 Kim Wheeler, Capital 12 Accounts Receivable 33 Kim Wheeler, Drawing 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 2. Post 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. 3. Prepare an unadjusted trial balance for Aztec Designs as of July 313, 2012. 4. Determine the excess of revenues over expenses for July.

Problem 2-3B Name: Section: Score: 64% Key Code: [Kay code here] Instructions Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. Enter the appropriate amounts/formulas in the answer cells, or select from the drop-down list. In journal entries, dates will not be graded. In the general ledger accounts, only the final balance of the account will be graded. For correct grading in the trial balance, enter a zero where you would otherwise leave an amount cell blank. An asterisk (*) will appear to the right of incorrect entries in outlined answer cells. 1. JOURNAL Date 2012 July Page 1 Post Ref. Description 1 Cash Kim Wheeler, Capital Debit Credit 2 1,000 2 1,000 4 Rent Expense Cash 2 ,750 2 ,750 10 Truck Cash Notes Payable 18,000 4,000 14,000 13 Equipment Accounts Payable 9,000 14 Supplies Cash 1,500 15 Prepaid Insurance Cash 3,600 9,000 1,500 3,600 15 Cash Fees Earned 12,000 12,000 JOURNAL Page 2 Post Ref. Date Description 2012 July 21 Accounts Payable Cash Debit Credit 2 ,000 2 ,000 2 4 Accounts Receivable Fees Earned 9,800 9,800 2 6 Truck Expense Accounts Payable 7 00 7 00 2 7 Utilities Expense Cash 1,000 1,000 2 7 Miscellaneous Expense Cash 300 300 2 9 Cash Accounts Receivable 4,600 30 Wages Expense Cash 2 ,800 31 Kim Wheeler, Drawing Cash 2 ,500 2. 4,600 2 ,800 2 ,500 GENERAL LEDGER Cash Date 2012 July 11 Item Post Ref. Dr. 1 Cr. - 2 1,000 2 ,750 Balance Dr. Cr. 2 ,750 2 1,000 Accounts Receivable Date 2012 July 12 Item Post Ref. Dr. Cr. Balance Dr. Cr. Item Post Ref. Dr. Cr. Balance Dr. Cr. Item Post Ref. Dr. Cr. Balance Dr. Cr. Item Post Ref. Dr. Cr. Balance Dr. Cr. Item Post Ref. Dr. Cr. Balance Dr. Cr. Item Post Ref. Dr. Cr. Balance Dr. Cr. Item Post Ref. Dr. Cr. Balance Dr. Cr. Post Ref. Dr. Cr. Balance Dr. Cr. Item Post Ref. Dr. Cr. Balance Dr. Cr. Item Post Ref. Dr. Cr. Balance Dr. Cr. Item Post Ref. Dr. Cr. Balance Dr. Cr. Item Post Ref. Dr. Cr. Balance Dr. Cr. Item Post Ref. Dr. Cr. Balance Dr. Cr. Item Post Ref. Dr. Cr. Balance Dr. Cr. Post Ref. Dr. Cr. Balance Dr. Cr. Supplies Date 2012 July 13 Prepaid Insurance Date 2012 July 14 Equipment Date 2012 July 16 T ruck Date 2012 July 18 Notes Payable Date 2012 July 21 Accounts Payable Date 2012 July 22 Kim Wheeler, Capital Date 2012 July 31 Item Kim Wheeler, Drawing Date 2012 July 32 Fees Earned Date 2012 July 41 Wages Expense Date 2012 July 51 Rent Expense Date 2012 July 53 Utilities Expense Date 2012 July 54 T ruck Expense Date 2012 July 55 Miscellaneous Expense Date 2012 July Item 3. 59 AZTEC DESIGNS Unadjusted Trial Balance July 31, 2012 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Truck Notes Payable Accounts Payable Kim Wheeler, Capital Kim Wheeler, Drawing Fees Earned Wages Expense Rent Expense Utilities Expense Truck Expense Miscellaneous Expense 1,500 3,600 9,000 18,000 2 ,500 2 ,800 2 ,750 1,000 7 00 300 64,500 14,000 12,000 * 2 1,000 64,500 Problem 2-3B Name: Solution Section: Score: ON Key Code: Instructions Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. Enter the appropriate amounts/formulas in the answer cells, or select from the drop-down list. In the general ledger accounts, only the final balance of the account will be graded. For correct grading in the trial balance, enter a "0" where you would otherwise leave an amount cell blank. An asterisk (*) will appear to the right of incorrect entries in outlined answer cells. 1. Page 1 JOURNAL Date 2012 July Post Ref. Description Debit 1 Cash Kim Wheeler, Capital 11 31 4 Rent Expense Cash 53 11 2 ,750 10 Truck Cash Notes Payable 18 11 21 18,000 13 Equipment Accounts Payable 16 22 9,000 14 Supplies Cash 13 11 1,500 15 Prepaid Insurance Cash 14 11 3,600 11 41 Credit 2 1,000 12,000 15 Cash Fees Earned 2 1,000 2 ,750 4,000 14,000 9,000 1,500 3,600 12,000 JOURNAL Page 2 Post Ref. Date Description 2012 July 21 Accounts Payable Cash Debit 22 11 2 4 Accounts Receivable Fees Earned 12 41 9,800 2 6 Truck Expense Accounts Payable 55 22 7 00 2 7 Utilities Expense Cash 54 11 Credit 2 ,000 1,000 2 ,000 9,800 7 00 1,000 2 7 Miscellaneous Expense Cash 59 11 300 2 9 Cash Accounts Receivable 11 12 4,600 30 Wages Expense Cash 51 11 2 ,800 31 Kim Wheeler, Drawing Cash 32 11 2 ,500 300 4,600 2 ,800 2 ,500 GENERAL LEDGER 2. Cash Date 2012 July 11 Item 1 4 10 14 15 15 21 27 27 29 30 31 Post Ref. 1 1 1 1 1 1 2 2 2 2 2 2 Dr. Cr. 2 1,000 2 ,750 4,000 1,500 3,600 12,000 2 ,000 1,000 300 4,600 2 ,800 2 ,500 Balance Dr. Cr. 2 1,000 18,250 14,250 12,750 9,150 2 1,150 19,150 18,150 17,850 2 2,450 19,650 17,150 Accounts Receivable Date 2012 July 24 29 12 Item Post Ref. 2 2 Cr. Balance Dr. Cr. 4,600 Dr. 9,800 5,200 Cr. Balance Dr. Cr. 9,800 Supplies Date 2012 July 14 13 Item Post Ref. Item Post Ref. Dr. 1 1,500 1,500 Prepaid Insurance Date 2012 July 15 14 Dr. 1 Cr. 3,600 Balance Dr. Cr. 3,600 Equipment Date 2012 July 13 16 Item Post Ref. Item Post Ref. Dr. 1 18,000 Item Post Ref. Dr. Dr. 1 Cr. 9,000 Balance Dr. Cr. 9,000 T ruck 18 Date 2012 July 10 Cr. Balance Dr. Cr. 18,000 Notes Payable Date 2012 July 10 21 1 Cr. Balance Dr. Cr. 14,000 14,000 Accounts Payable Date 2012 July 13 21 26 22 Item Post Ref. Dr. 1 1 2 Cr. Balance Dr. Cr. 9,000 9,000 7 ,000 7 ,700 2 ,000 7 00 Kim Wheeler, Capital Date 2012 July 31 Item 1 Post Ref. Dr. 1 Cr. Balance Dr. Cr. 2 1,000 2 1,000 Kim Wheeler, Drawing Date 2012 July 31 32 Item Post Ref. Dr. 2 Cr. 2 ,500 Balance Dr. Cr. 2 ,500 Fees Earned Date 2012 July 15 24 41 Item Post Ref. Dr. 1 2 Cr. Balance Dr. Cr. 12,000 9,800 12,000 2 1,800 Wages Expense Date 2012 July 30 51 Item Post Ref. Dr. 2 Cr. 2 ,800 Balance Dr. Cr. 2 ,800 Rent Expense Date 2012 July 53 Item Post Ref. Item Post Ref. 4 Dr. 1 Cr. 2 ,750 Balance Dr. Cr. 2 ,750 Utilities Expense Date 2012 July 27 54 Dr. 2 Cr. 1,000 Balance Dr. Cr. 1,000 T ruck Expense Date 2012 July 26 55 Item Post Ref. Dr. 2 Cr. 7 00 Balance Dr. Cr. 7 00 Miscellaneous Expense Date 2012 July 27 Item 3. 59 Post Ref. Dr. 2 Cr. 300 300 AZTEC DESIGNS Unadjusted Trial Balance July 31, 2012 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Truck Notes Payable Accounts Payable Kim Wheeler, Capital Kim Wheeler, Drawing Fees Earned Wages Expense Rent Expense Utilities Expense Truck Expense Miscellaneous Expense 17,150 5,200 1,500 3,600 9,000 18,000 2 ,500 2 ,800 2 ,750 1,000 7 00 300 64,500 Balance Dr. Cr. 14,000 7 ,700 2 1,000 2 1,800 64,500