Question
On June 1, 20Y6, Hannah Ellis established an interior decorating business, Whitworth Designs. During the month, Hannah completed the following transactions related to the business:
On June 1, 20Y6, Hannah Ellis established an interior decorating business, Whitworth Designs. During the month, Hannah completed the following transactions related to the business: June 1 Hannah transferred cash from a personal bank account to an account to be used for the business, $26,500. 1 Paid rent for period of June 1 to end of month, $3,000. 6 Purchased office equipment on account, $12,900. 8 Purchased a van for $30,800 paying $6,200 cash and giving a note payable for the remainder. 10 Purchased supplies for cash, $1,560. 12 Received cash for job completed, $7,900. 15 Paid annual premiums on property and casualty insurance, $2,000. 23 Recorded jobs completed on account and sent invoices to customers, $12,330. 24 Received an invoice for van expenses, to be paid in July, $1,300. Enter the following transactions on Page 2 of the two-column journal: June 29 Paid utilities expense, $3,450. 29 Paid miscellaneous expenses, $1,670. 30 Received cash from customers on account, $7,700. 30 Paid wages of employees, $4,000. 30 Paid creditor a portion of the amount owed for equipment purchased on June 6, $6,460. 30 Withdrew cash for personal use, $2,100. Required: 1. Journalize each transaction in a two-column journal beginning on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited.
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