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 1 6 8 Kris transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $27 200 Paid rent for period of November 1 to end of month, 54,000 Purchased office equipment on account, 512,820. Purchased a truck for $30,000 paying 56.900 cash and giving a note payable for the remainder Purchased supplies for cash, $1,650 Received cash for job completed, $8,000 Paid annual premiums on property and casualty insurance, $2,300 Recorded jobs completed on account and sent invoices to customers, 512,000 Received an invoice for truck expenses, to be paid in November, 51,190 10 12 15 23 24 Enter the following transactions on Page 2 of the two-column journal: . 29 29 Paid utilities expense, $3,560. Paid miscellaneous expenses $1.800. Received cash from customers on account, $7,500. 30 30 30 Paid wages of employees, $4,750. Paid creditor a portion of the amount owed for equipment purchased on November 6, S6,230. Paid dividends, $2,000. 30 Required: 1. Journalize each transaction in a two-column Journal 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) Refer to the Chart of Accounts for exact wording of account titles. 2. Post (in chronological order) the journal to a ledger of four-colurnn 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. Prepare an unadiusted trial balance for Modern Designs as of November 30, 2018, 4. Determine the excess of reveres over expenses for November 5. Can you think of any reason why the amount determined in (4) might not be the net income for November? 4. Determine the excess of revenues over expenses for November S 5. Can you think of any reason why the amount determined in (4) might not be the net income for November? O Because the cash balance is incorrect. O Because the closing inventory balance is missing. Because the dividends are declared but not paid Because necessary adjustment to expenses, like depreciation has not been made. CHART OF ACCOUNTS Modern Designs General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 13 Supplies EXPENSES 14 Prepaid Insurance 51 Wages Expense 16 Equipment 53 Rent Expense 18 Truck 54 Utilities Expense 55 Truck Expense 59 Miscellaneous Expense LIABILITIES 21 Notes Payable 22 Accounts Payable EQUITY 31 Common Stock 33 Dividends