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.

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.

CHART OF ACCOUNTS

Modern Designs

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
14	Prepaid Insurance
16	Equipment
18	Truck

	LIABILITIES
21	Notes Payable
22	Accounts Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends

	REVENUE
41	Fees Earned

	EXPENSES
51	Wages Expense
53	Rent Expense
54	Utilities Expense
55	Truck Expense
59	Miscellaneous Expense

LEDGER

Account: Cash Account No.11

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2
3
4
5
6
7
8
9
10
11
12

Accounts receivable account nr 12

DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
					DEBIT	CREDIT
1
2

Supplies 13

DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
					DEBIT	CREDIT
1

prepaid insurance 14

DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
					DEBIT	CREDIT
1

Equipment 16

1 row

Truck 18

1 row

Notes Payable 21

1 row

Accounts Payable 22

3 rows

Common Stock 31

1 row

Dividends 33

1row

Fees Earned 41

3 rows

Wages Expense 51

1row

Rent Expense 53

1row

Utilities Expense 54

1row

Truck Expense 55

1row

Miscellaneous Expense 59

1row