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 1 6 8 Hannah transferred cash from a personal bank account to an account to be used for the business, $26,500 Paid rent for period of June 1 to end of month, $3,000. Purchased office equipment on account, $12,900. Purchased a van for $30,800 paying 56,200 cash and giving a note payable for the remainder Purchased supplies for cash, S1,560 Received cash for job completed, $7.900 Paid annual premiums on property and casualty insurance, $2,000 Recorded jobs completed on account and sent invoices to customers, $12,330 Received an invoice van expenses, to be paid in July $1,300 10 12 15 23 24 Enter the following transactions on Page 2 of the two-column journal Jung 29 29 30 Paid utilities expense. 53.450 Paid miscellaneous expenses. 51,670 Received cash from customers on account, 57.700 Paid wages of employees 54.000 Paid creditor a portion of the amount owed for equipment purchased on June 6 56.460 Withdrew cash for personal use. $2,100 30 30 30 eBook Show Me How Calculator 30 Paid creditor a portion of the amount owed for equipment purchased on June 6, 56,460. Withdrew cash for personal use. $2,100. 30 Required: 1. Journalize each transaction in a two-column joumal 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 debitor credit and a debitor credit under BALANCE on every line. In CNOW, Journal pages do not begin with For example journal page 10 POST. REF. is simply 10. If the ending balance is so, at least one balance amount should be 50 3. Prepare an unedusted 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 Whitworth Designs CHART OF ACCOUNTS Whitworth Designs General Ledger 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 eBook Show Me How Calculator 1. Journaltze each transaction in a two-column xursal beginning on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited (Dom 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 journal page is used for debitor credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered JOURNAL ACCOUNTING EQUATION DITE DESTION POST. REF CREDIT LIABILITIES EQUITY 10 11 22 605 PM 9/3/2020 o eBook Show Me How Calculator 12 13 14 15 16 17 15 PAGE 2 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POSTRE DERIT CREDIT ASSETS LIABILITIES EQUITY et e g 6-05 PM 9/3/2020 PAGE JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST RET DEEIT 1 CREDIT ASSETS EQUITY 2 3 5 10 Iarnar eBook Show Me How Calculator 2. Post (in chronological order) the journal to a fedor of four column accounts, inserting appropriate posting references in both the journal and the lodger as each items posted Extend the balances to the appropriate balance columns after each transaction is posted. Record DATE, POST REF, a debitor credit and a debitor credit under BALANCE on every line, In CNOW, Journal pages do not begin with ". For example journal page 10 POST REF is simply 10. If the ending balance is 50, at least one balance amount should be so LEDGER Account No. 11 Account No. 12 Account No. 13 Account No. 14 Account No. 16 Account No. 18 Account No. 21 Account: Cash Account: Accounts Receivable Account Supplies Account: Prepaid Insurance Account: Orice Equipment * Accounts van Account Notes Payable Account: Accounts Payable Account: Hannah bis, Capital AccountHannah bills, Drawing Account: Fees Eamed Account: Wages Expense Account: Rent Expense Account: Utilities Expense Account: Van Expense Account: Miscellaneous Expense Account No. 22 Account No. 31 Account No. 32 Account No. 41 Account No. 51 Account No. 5 Account No. 54 Account No. 55 Account No. 59 09 6:05 9/3/2 O DOLL eBook Show Me How Calculator 3. Prepare an unedusted trial balance for Whitworth Designs as of June 30, 2016 SHEET AL.. Whitworth Designs UNADJUSTED TRIAL BALANCE June 30, 2016 ACCOUNT TITLE DELIT CREDIT 1 Cash 2 Accounts Receivable 3 Supplies