On November 1, 2016, Patty Cosgrove established an interior decorating business, Classic Designs.

During the months, Patty completed the following transactions related to the business:

Nov 1. Patty transferred cash from a personal bank account to an account to be used for the

business, $27,750.

1. Paid rent for period of November 1 to end of month, $4,000.

6. Purchased office equipment on account, $12,880.

8. Purchased a used truck for $32,500, paying $6,500 cash and giving a note payable for

the remainder.

10. Purchased supplies for cash, $1,860.

12. Received cash for job completed, $7,500.

15. Paid annual premiums on property and casualty insurance, $2,400.

23. Recorded jobs completed on account and sent invoices to customers, $12,440.

24. Received an invoice for truck expenses, to be paid in December, $1,100.

29. Paid utilities expense, $3,600.

29. Paid miscellaneous expenses, $1,700.

30. Received cash from customers on account, $8,000.

30. Paid wages of employees, $4,750.

30. Paid creditor a portion of the amount owed for equipment purchased on November 6,

$6,220.

30. Withdrew cash for personal use, $2,000.

Instructions

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 the time.) Explanations may be omitted.

11 Cash

31 Patty Cosgrove, Capital

12 Accounts Receivable

32 Patty Cosgrove, 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

2. Post the journal to a ledger of four-column accounts, inserting appropriate posting

references as each item is posted. Extend the balances to the appropriate balance columns

after each transaction is posted.

3. Prepare an unadjusted trial balance for Classic Designs as of November 30, 2016. (Place a

zero in empty cells in order for them to be graded.)

4. Determine the excess of revenues over expenses for November.

(PLEASE answer all four questions thoroughly)