On November 1, 20Y9, Lexi Martin established an interior decorating business, Heritage Designs. During the month, Lexi completed the following transactions related to the business:
| Nov. | 1 | Lexi transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $50,000. |
| | 1 | Paid rent for period of November 1 to end of month, $4,000. |
| | 6 | Purchased office equipment on account, $15,000. |
| | 8 | Purchased a truck for $38,500 paying $5,000 cash and giving a note payable for the remainder. |
| | 10 | Purchased supplies for cash, $1,750. |
| | 12 | Received cash for job completed, $11,500. |
| | 15 | Paid annual premiums on property and casualty insurance, $2,400. |
| | 23 | Recorded jobs completed on account and sent invoices to customers, $22,300. |
| | 24 | Received an invoice for truck expenses, to be paid in November, $1,250. |
structions n November 1, 20Y9, Lexi Martin established an interior decorating business, Heritage Designs. During the month, Lexi completed the following ansactions related to the business: Nov. 1 Lexi transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $50,000. 1 Paid rent for period of November 1 to end of month, $4,000. 6 Purchased office equipment on account, $15,000. 8 Purchased a truck for $38,500 paying $5,000 cash and giving a note payable for the remainder. 10 Purchased supplies for cash, $1,750. 12 Received cash for job completed, $11,500. 15 Paid annual premiums on property and casualty insurance, $2,400. 23 Recorded jobs completed on account and sent invoices to customers, $22,300. 24 Received an invoice for truck expenses, to be paid in November, $1,250. 252 Enter the following transactions on Page 2 of the two-column journal: Nov. 29 Paid utilities expense, $4,500. Enter the following transactions on Page 2 of the two-column journal: Nov. Paid utilities expense, $4,500. Paid miscellaneous expenses, $1,000. Received cash from customers on account, $9,000. Paid wages of employees, $6,800. Paid creditor a portion of the amount owed for equipment purchased on November 6, $3,000. Paid dividends, $2,500. 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 b 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-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. Prepare an unadjusted trial balance for Heritage Designs as of November 30, 2019. 4. Determine the excess of revenues 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? * * groping wor Account Cash DATE Nov. 1 Nov. 1 Nov. 8 Nov 10 Nov. 12 Nov. 15 Nov 29 Nov 29 Nov 30 Nov 30 Nov 30 Nov 30 Account: Accounts Receivable ITEM LEDGER POST. REF. DEBIT CREDIT DOBIT Score: 63/ Account No. 11 CREDIT Account No. 12 BALANCE DATE Account: Supplies DATE Account: Prepaid Insurance DATE Account: Equipment DATE Account: Truck DATE ITEM ITEM ITEM ITEM ITEM POST, REF POST. REF. POST. REF. POST. REF POST REF DENT DENT DEBIT DEBIT DEBIT CREDIT CREDIT CREDIT CREDIT CREDIT DEBIT DEBIT DENT DENIT DEBIT BALANCE Account No. CRED Account No. BALANCE BALANCE CREDI BALANCE Account No. CRED CREDI BALANCE Account No. CREDE DATE Account: Accounts Payable DATE Account: Common Stock DATE Account: Dividends DATE Account: Fees Earned DATE Check My Work ITEM ITEM ITEM ITEM ITEM POST. REF. POST. REF. POST REF POST. REF POST. REF DEBIT DEINT DEBIT DEBIT DEBIT CREDIT CREDIT CREDIT CREDIT CREDIT DEBIT DEBIT DERIT DEBIT BALANCE CRED Account No. 1 CREDE Account No. 2 CREDI BALANCE BALANCE Account No. BALANCE CREDI Account No. BALANCE Account: Fees Earned DATE Account: Wages Expense DATE Account: Rent Expense DATE Account: Utilities Expense DATE Account: Truck Expense DATE Check My Work ITEM ITEM ITEM ITEM ITEM POST. REF. POST. REF. POST. REF. POST REF POST REF DEBIT DEBIT DENT DEBIT DEBIT CREDIT CREDIT CREDIT CREDIT CREDIT DEBIT DEBIT DEBIT DEBIT DEBIT Account No. CRED Account No. 5 CREDE BALANCE BALANCE Account No. CRED BALANCE Account No. CRED Account No. CRED BALANCE BALANCE Next Account: Miscellaneous Expense DATE Feedback Account No. ITEM POST REF DEBIT CRED Points: 20.78/ Check My Work 2. See the illustration in Exhibit 4 in the text. The 4-column accounts ledger is a more formal presentation of the T accounts. The Posting Reference column should have the page number from the journal where the transaction is found. The debits and credits for each journal entry are posted to the accounts in the order in which they occur in the journal. After each entry, subtotal the 4-column ledger, making sure to maintain the correct normal balance and double- checking any non-normal balances to see if they are valid or possible. Unadjusted Trial Balance Shaded cells have feedback. 3. Prepare an unadjusted trial balance for Heritage Designs as of November 30, 2019 Check My Work CREDIT DEBIT BALANCE Next > Final Question 4. Determine the excess of revenues over expenses for November. $ Points: 0/1 Feedback Check My Work Calculate Revenues - Expenses = Net Income. 5. Can you think of any reason why the amount determined in (4) might not be the net income for November
