Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

On June 1 , 2 0 1 9 , Kris Storey established an interior decorating business, Eco - Centric Designs. During the month, Kris completed

On June 1,2019, Kris Storey established an interior decorating business, Eco-Centric Designs. During the month, Kris completed the following transactions related to the business:
June 1. Kris transferred cash from a personal bank account to an account to be used for the business, $16,800.
4. Paid rent for period of June 4 to end of month, $1,630.
6. Purchased a used truck for $14,000, paying $1,000 cash and giving a note payable for the remainder.
8. Purchased equipment on account, $6,550.
10. Purchased supplies for cash, $1,130.
12. Paid annual premiums on property and casualty insurance, $2,520.
15. Received cash for job completed, $7,060.
Enter the following transactions on Page 2 of the two-column journal:
23. Paid creditor a portion of the amount owed for equipment purchased on June 13, $2,340.
24. Recorded jobs completed on account and sent invoices to customers, $8,030.
25. Received an invoice for truck expenses, to be paid in July, $740.
26. Paid utilities expense, $840.
27. Paid miscellaneous expenses, $300.
28. Received cash from customers on account, $3,360.
29. Paid wages of employees, $2,230.
30. Withdrew cash for personal use, $1,860.
Required: 11 Cash 31 Kris Storey, Capital
12 Accounts Receivable 32 Kris Storey, 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 (in chronological order) the journal to a ledger of four-column accounts, inserting appropriate posting references in the general journal 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

15th edition

978-0077522940

Students also viewed these Accounting questions