Question
On November 1, 2018, Kris Lehman established an interior decorating business, Modern Designs. During the month, Kris completed the following transactions related to the business:
On November 1, 2018, Kris Lehman established an interior decorating business, Modern Designs. During the month, Kris completed the following transactions related to the business:
Nov. | 1 | Kris transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $36,000. |
1 | Paid rent for period of November 1 to end of month, $4,000. | |
6 | Purchased office equipment on account, $16,000. | |
8 | Purchased a truck for $43,000 paying $4,300 cash and giving a note payable for the remainder. | |
10 | Purchased supplies for cash, $1,860. | |
12 | Received cash for job completed, $8,000. | |
15 | Paid annual premiums on property and casualty insurance, $2,400. | |
23 | Recorded jobs completed on account and sent invoices to customers, $15,500. | |
24 | Received an invoice for truck expenses, to be paid in November, $1,250. |
Enter the following transactions on Page 2 of the two-column journal:
Nov. | 29 | Paid utilities expense, $3,660. |
29 | Paid miscellaneous expenses, $1,700. | |
30 | Received cash from customers on account, $10,500. | |
30 | Paid wages of employees, $4,750. | |
30 | Paid creditor a portion of the amount owed for equipment purchased on November 6, $4,000. | |
30 | Paid dividends, $1,600. |
Prepare an unadjusted trial balance for Modern Designs as of November 30, 2018. |
using the
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||
Modern Designs | |||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||
|
|
Modern Designs
UNADJUSTED TRIAL BALANCE
November 30, 2018
ACCOUNT TITLE | DEBIT | CREDIT | |
---|---|---|---|
1 | Cash | ||
2 | Accounts Receivable | ||
3 | Supplies | ||
4 | Prepaid Insurance | ||
5 | Equipment | ||
6 | Truck | ||
7 | Notes Payable | ||
8 | Accounts Payable | ||
9 | Common Stock | ||
10 | Retained Earnings | ||
11 | Dividends | ||
12 | Fees Earned | ||
13 | Wages Expense | ||
14 | Rent Expense | ||
15 | Utilities Expense | ||
16 | Truck Expense | ||
17 | Miscellaneous Expense | ||
18 | Totals |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started