Question
On November 1, 2019, Debbie Debit established an interior decorating business, Debit Designs. During the month, Debit completed the following transactions related to the business:
On November 1, 2019, Debbie Debit established an interior decorating business, Debit Designs. During the month, Debit completed the following transactions related to the business: November 1: Debit transferred cash from a personal bank account to a business account $27,750 1: Paid rent for the month $4,000 6: Purchased office equipment on account, $12,880 8: Purchased a 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 invoice to customers $12,440 24: Received an invoice (bill) for truck expenses for the month of November to be paid in the following month $1,100 29: Paid utilities expense $3,660 29: Paid miscellaneous expense $1,700 30: Received cash from customers on account 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 Required: Prepare the journal entries for each transaction. I am not requiring you, at this point to post the transactions to the T accounts (General Ledger) or prepare an unadjusted Trial Balance.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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