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:

June1Hannah transferred cash from a personal bank account to an account to be used for the business, $26,500.1Paid rent for period of June 1 to end of month, $3,000.6Purchased office equipment on account, $12,900.8Purchased a van for $30,800 paying $6,200 cash and giving a note payable for the remainder.10Purchased supplies for cash, $1,560.12Received cash for job completed, $7,900.15Paid annual premiums on property and casualty insurance, $2,000.23Recorded jobs completed on account and sent invoices to customers, $12,330.24Received an invoice for van expenses, to be paid in July, $1,300.

Enter the following transactions on Page 2 of the two-column journal:

June29Paid utilities expense, $3,450.29Paid miscellaneous expenses, $1,670.30Received cash from customers on account, $7,700.30Paid wages of employees, $4,000.30Paid creditor a portion of the amount owed for equipment purchased on June 6, $6,460.30Withdrew 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. (Do not insert the post reference numbers until you have posted the entry to the general ledger in part 2.) CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.2.Post (in chronological order) the journal to a ledger 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. Record DATE, ITEM, POST REF, a debit or credit and a debit or credit under BALANCE on every line. In CNOW, Journal pages do not begin with J. For example journal page 10 POST. REF. is simply 10. If the ending balance is $0, at least one balance amount should be $0.3.Prepare an unadjusted trial balance for Whitworth Designs as of June 30, 20Y6.4.Determine the excess of revenues over expenses for June.5.Can you think of any reason why the amount determined in (4) might not be the net income for June?

Instructions 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, S1,560 12 Received cash for job completed, 57,900 15 Paid annual premiums on property and casualty Insurance, $2,000 23 Recorded jobs completed on account and sent involces to customers, $12,330 24 Received an involce for van expenses, to be paid in July, S1,300 Enter the following transactions on Page 2 of the two-column Journal June 29 Paid utilities expense, $3,450. 29 Paid miscellaneous expenses, S1,670 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, 56,460, 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. (Do not insert the post reference numbers until you have posted the entry to the general ledger in part 2) CNOW journals do not use lines for journal explanations. Every time on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 2. Post (in chronological order) the journal to a ledger 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 Record DATE, ITEM, POST REF, a debit or credit and a debitor credit under BALANCE on every line In CNOW, Joumal pages do not begin with "U". For example journal page 10 POST. REF. is simply 10. if the ending balance is so, at least one balance amount should be so 3. Prepare an unadusted trial balance for Whitworth Designs as of June 30, 2016 4. Determine the excess of revenues over expenses for June 5. Can you think of any reason why the amount determined in (4) might not be the net income for June? Chart of Accounts CHART OF ACCOUNTS Geren Lediger ASSETS REVENUE 13 Ace Rece 13 Sep 14 Page 16 8 Ves EXPENSES 51 Wapety 5 BerExpert LIABLES 21 Neeyebie 22 Ah Four 11 C 12 Dav Ja creation Page, Lingerie corecten or everyone w NOW and credit by The groot design to you when you shorter that of the delib yeye compering it to my in the wees yes It below JOURNAL Score: 231117 ACCOUNTING lar OUR ROWY CAT AMITE UMUT TY 24,500 + . + lunch Fantas 1 el Cash 1 + 10000 . 5 un'oa ALL M 190 12.700.00 1 NO - 1 00.00 NDODO + Mela SA | 1 Jun 11' Spes 15400 in 12 1.92000 1 NE Fers are tudi . 2,000.00 + + # 12,990.00 1 AR Felmed M 1.500.00 - AM 1 JOURNAL Scorer 1517161 ACCOUNTING EQUATION ROUTE CT UMES 2 DET 1450 GOUT + 1 UR 3,450.00 4 3 ' Michael 16700 1670.00 3 no can A T1000 1 T 10000 1 Wigs per CH . 400 . 10 AP 44 6.460.00 1 13 Drawing 23000 Foto Che My 1 w warstw wind any action investaw w Dee whateveres de w Romany 2. Dati che come around the balance det or credider BALANCE NOW domowegin Foren PONT , that he LEDER ca CNTT 1 100 TOG 2.000.00 450.00 6.00 790.00 1 1 2 RO. H4 10/19/2020 CengageNOWV2 Online teaching and learning resource from Cengage Leaming 18 11 AC: HD.Co Account Home De ramad Waper AR 13 Are we tape Acco: Feed Check My Won 2 The color of the Ta The Prese hawe i puger here te houd Mhe.curledige, mange Www year baca la nether we vidole ST wtorer USASTE TRABALANCE Ane 2016 REST + 1 M 460 1500 1,000.00 12.000 Home Page A Ray 31000 10000 I forstand UN * pe ve OM 4,40 1971.00 TODO Final Questions 4. Determine the excess of revenues over expenses for June $6,810 Points 1/1 5. Can you think of any reason why the amount determined in (4) might not be the net income for June? Check all that apply Additions to capital has been wrongly recorded as drawings Some supplies may have been used during June but no supplies expense has been recorded Fees earned includes some fees earned in the month of June that have not been received Utilities expense includes expenses incurred for the month of June than have not yet been paid Points 1/1 Feedback Check My Work 4 Calculate Revenues - Expenses - Net Income