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 Enter the following transactions on Page 2 of the two column journal 29 Paid utilities expense, $4,500 29 Paid miscellaneous expenses, $1,000 30 Received cash from customers on account, $9,000 30 Paid wages of employees, $6,800 30 Paid creditor a portion of the amount owed for equipment purchased on November 6, $3,000 30 Paid dividends, $2,500 Instructions Journalize each transaction in a two column journal beginning on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited (Do not insert the account numbers in the journal at this time ) Explanations may be omitted 11 Cash 31 Common Stock 12 Accounts Receivable 33 Dividends 13 Supplies 41 Fees Earned 14 Prepaid Insurance 51 Wages Expense 16 Equipment 53 Rent Expense 18 Truck 54 Utilities Expense 21 Notes Payable 55 Truck Expense 22 Accounts Payable 59 Miscellaneous Expense Post the journal to a ledger of four column accounts, inserting appropriate posting references as each item is posted Extend the balances to the appropriate balance columns after each transaction is posted Prepare an unadjusted trial balance for Heritage Designs as of November 30, 20Y9 Answer Check Figure Total of Credit column $111,450 Determine the excess of revenues over expenses for November Can you think of any reason why the amount determined in (4) might not be the net income for November

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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.

Enter the following transactions on Page 2 of the two-column journal:

29.		Paid utilities expense, $4,500.
29.		Paid miscellaneous expenses, $1,000.
30.		Received cash from customers on account, $9,000.
30.		Paid wages of employees, $6,800.
30.		Paid creditor a portion of the amount owed for equipment purchased on November 6, $3,000.
30.		Paid dividends, $2,500.

Instructions

Journalize each transaction in a two-column journal beginning on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) Explanations may be omitted.

11 Cash	31 Common Stock
12 Accounts Receivable	33 Dividends
13 Supplies	41 Fees Earned
14 Prepaid Insurance	51 Wages Expense
16 Equipment	53 Rent Expense
18 Truck	54 Utilities Expense
21 Notes Payable	55 Truck Expense
22 Accounts Payable	59 Miscellaneous Expense

Post the journal to a ledger of four-column accounts, inserting appropriate posting references as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted.
Prepare an unadjusted trial balance for Heritage Designs as of November 30, 20Y9.
Answer
Check Figure: Total of Credit column: $111,450
Determine the excess of revenues over expenses for November.
Can you think of any reason why the amount determined in (4) might not be the net income for November?