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. Nov1 Paid rent for period of November 1 to end of month, $4,000. Nov 6 Purchased office equipment on account, $16,000. Nov 8 Purchased a truck for $43,000 paying $4,300 cash and giving a note payable for the remainder. Nov 10 Purchased supplies for cash, $1,860. Nov 12 Received cash for job completed, $8,000. Nov 15 Paid annual premiums on property and casualty insurance, $2,400. Nov 23 Recorded jobs completed on account and sent invoices to customers, $15,500. Nov 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. Nov29 Paid miscellaneous expenses, $1,700. Nov 30 Received cash from customers on account, $10,500. Nov 30 Paid wages of employees, $4,750 Nov.30Paid creditor a portion of the amount owed for equipment purchased on November 6, $4,000. Nov 30 Paid dividends, $1,600.

1.Journalizeeach transaction in a two-columnjournal referring to thechart of accountsin selecting theaccountsto bedebitedandcredited. Refer to the Chart of Accounts for exact wording of account titles.

2.Post(in chronological order) the journal to aledgerof 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.

3.Illustrate anunadjusted trial balancefor Modern Designs as of November 30, 2018.

4.Determine the excess ofrevenuesoverexpensesfor November.

5.Can you think of any reason why the amount determined in (4) might not be the net income for November?