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, $48,000. 1 Paid rent for period of June 1 to end of month, $6,510. 6 Purchased office equipment on account, $19,340. 8 Purchased a van for $39,100 paying $6,200 cash and giving a note payable for the remainder. 10 Purchased supplies for cash, $3,260. 12 Received cash for job completed, $16,730. 15 Paid annual premiums on property and casualty insurance, $4,940. 23 Recorded jobs completed on account and sent invoices to customers, $16,320. 24 Received an invoice for van expenses, to be paid in July, $2,060. Enter the following transactions on Page 2 of the two-column journal: June 29 Paid utilities expense, $4,250. 29 Paid miscellaneous expenses, $1,300. 30 Received cash from customers on account, $10,050. 30 Paid wages of employees, $6,950. 30 Paid creditor a portion of the amount owed for equipment purchased on June 6, $9,360. 30 Withdrew cash for personal use, $2,200. 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, 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? ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 13 Supplies EXPENSES 14 Prepaid Insurance 51 Wages Expense 16 Office Equipment 53 Rent Expense 18 Van 54 Utilities Expense 55 Van expense LIABILITIES 59 Miscellaneous Expense 21 Notes Payable 22 Accounts Payable EQUITY 31 Hannah Ellis, Capital 32 Hannah Ellis, Drawing 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. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 Jan. 1 Cash 2 3 4 5 6 7 8 9 PAGE 2 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 st 5 6 7 8 9 10 11 12 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 th balances to the appropriate balance columns after each transaction is posted. Record DATE, 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. LEDGER Account: Cash Account No. 11 Account: Accounts Receivable Account No. 12 Account: Supplies Account No. 13 Account: Prepaid Insurance Account No. 14 Account: Office Equipment Account No. 16 Account: Van Account No. 18 Account: Notes Payable Account No. 21 Account: Accounts Payable Account No. 22 Account: Hannah Ellis, Capital Account No. 31 Account: Hannah Ellis, Drawing Account No. 32 Account: Fees Earned Account No. 41 Account: Fees Earned Account No. 41 Account: Wages Expense Account No. 51 Account: Rent Expense Account No. 53 Account: Utilities Expense Account No. 54 Account: Van expense Account No. 55 Account: Miscellaneous Expense Account No. 59 UNADJUSTED TRIAL BALANCE June 30, 2046 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Supplies 4 Prepaid Insurance 5 Office Equipment 6 Van 7 Notes Payable 8 Accounts Payable 9 Hannah Ellis, Capital 10 Hannah Ellis, Drawing 11 Fees Earned 12 Wages Expense 1.7 Dont Cynance 13 Rent Expense 14 Utilities Expense 15 Van expense 16 Miscellaneous Expense 17 Totals 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? Check all that apply. Utilities expense includes expenses incurred for the month of June than have not yet been paid. Fees earned includes some fees earned in the month of June that have not been received. Additions to capital has been wrongly recorded as drawings. ( Some supplies may have been used during June but no supplies expense has been recorded