Question
On June 1, 2016, Kim Wheeler established an interior decorating business, Intrex Designs. During the month, Kim completed the following transactions related to the business.
On June 1, 2016, Kim Wheeler established an interior decorating business, Intrex Designs. During the month, Kim completed the following transactions related to the business.
June | 1 | Kim transferred cash from a personal bank account to an account to be used for the business, $32,100. |
4 | Paid rent for period of June 4 to end of month, $3,110. | |
6 | Purchased a truck for $27,000, paying $3,000 cash and giving a note payable for the remainder. | |
8 | Purchased equipment on account, $12,520. | |
10 | Purchased supplies for cash, $2,150. | |
12 | Paid annual premiums on property and casualty insurance, $4,820. | |
15 | Received cash for job completed, $13,480. | |
23 | Paid creditor a portion of the amount owed for equipment purchased on June 13, $4,460. | |
24 | Recorded jobs completed on account and sent invoices to customers, $15,340. | |
25 | Received an invoice for truck expenses, to be paid in July, $1,410. | |
26 | Paid utilities expense, $1,610. | |
27 | Paid miscellaneous expenses, $580. | |
28 | Received cash from customers on account, $6,420. | |
29 | Paid wages of employees, $4,270. | |
30 | Withdrew cash for personal use, $3,560. |
Required:
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. For a compound transaction, if an amount box does not require an entry, leave it blank.
11 Cash | 31 Kim Wheeler, Capital |
12 Accounts Receivable | 32 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 |
General Journal | Page 1 | |||
---|---|---|---|---|
Date | Description | Post. Ref. | Debit | Credit |
2016 | ||||
June 1 | Cash | |||
Kim Wheeler, Capital | ||||
June 4 | Rent Expense | |||
Cash | ||||
June 6 | Truck | |||
Cash | ||||
Notes Payable | ||||
June 8 | Equipment | |||
Accounts Payable | ||||
June 10 | Supplies | |||
Cash | ||||
June 12 | Prepaid Insurance | |||
Cash | ||||
June 15 | Cash | |||
Fees Earned |
General Journal | Page 2 | |||
---|---|---|---|---|
Date | Description | Post. Ref. | Debit | Credit |
2016 | ||||
June 23 | Equipment | |||
Accounts Payable | ||||
June 24 | Accounts Receivable | |||
Fees Earned | ||||
June 25 | Truck Expense | |||
Accounts Payable | ||||
June 26 | Utilities Expense | |||
Cash | ||||
June 27 | Miscellaneous Expense | |||
Cash | ||||
June 28 | Cash | |||
Accounts Receivable | ||||
June 29 | Wages Expense | |||
Cash | ||||
June 30 | Kim Wheeler, Drawing | |||
Cash |
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