On October 1, 2014, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business Oct. 1. Jay transferred cash from a personal bank account to an account to be used for the business in exchange for common stock. $30,800. 4. Paid rent for period of October 4 to end of month, $2,990. 10. Purchased a used truck for $26,000, paying $2,000 cash and giving a note payable for the remainder. 13. Purchased equipment on account, $12,010. 14, Purchased supplies for cash, $2,060. 15. Paid annual premiums on property and casualty Insurance, $4,620. 15. Received cash for job completed, $12,940. Enter the following transactions on Page 2 of the two-column journal: 21. Paid creditor a portion of the amount owed for equipment purchased on October 13, $4,200. 24. Recorded jobs completed on account and sent invoices to customers, $14,720. 26. Received an invoice for truck expenses, to be paid in November, $1,360. 27. Paid utilities expense, $1,540. 27 Paid miscellaneous expenses, $550. 29. Received cash from customers on account, $6,160. 30. Paid wages of employees, $4,100. 31. Paid dividends, $3,420. Tide Mas M Gal 1. Journalize and insert the Posting References for 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. If an amount box does not require an entry, leave it blank 11 Cash 12 Acounts Receivable 31 Common Stock 33 Dividends 41 Fees Earned 13 Supplies 14 Prepaid Insurance 51 Wages Expense 10 Equipment 53 Rant Expense 18 Truck 54 Uities Expense 21 55 Truck Expense 22 Accounts Payable 50 Miscellaneous Expense General Journal Date Description Post. Ref. Debit Page 1 Credit 2014, loa i Oct. 4 Oct 10 Cash Common Stock Rent Expense Cash Truck O 30,000 V 30,000 2,990 V 2,990 26,000 .1 B Cash 2,000 Notes Payable Oct. 13 Equisiment 12,010 Accounts Payable 12,010 Oct. 14 2,060 Cath 2,000 V Oct. 15-Insurance Prepaid Insurance 4,620 Cash Oct. 15-Fees Cash Fees Earned 4,620 v 12,940 V 12,940 2014 Oct. 21 Date Oct. 24 Partly whing General Journal Page 2 Description Post. Ref. Debit Credit Accounts Payable Cash Accounts Receivable Fees Earned O 4,280 14,720 V 4,280 v 14.720 2014, Oct. 21 Accounts Payable 1,280 V Cash 4,280 Oct. 24 Accounts Receivable 14,720 Fees Earned 14,720 Oct. 26 Truck Expense 1,360 V Accounts Payable 1,360 Oct. 27-Utilities Utilities Expense 1,540 Cash 1,540 Oct. 27-Misc. Miscellaneous Expense 550 Cash 550 Oct. 29 Cash 6,160 Accounts Receivable 6,160 Oct. 30 Wages Expense 4,100 Cash 4,100 Oct. 31 Cash Dividends 3,420 V 3,420 2. Post (in chronological order) 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. If an amount box does not require an entry, leave it blank. General Ledger Account: Cash Account No. 11 Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 1 30,000 30,000 Oct. 4 2,990 X 2,990 X Oct. 10 2,000 Oct. 14 2,060 x 2,060 X Oct. 15 4,620 X 4,620 X Oct. 15 12,940 12,940 X 12,940 X Oct. 21 Oct. 27 Copy Oct. 29 30 lore t Oct. 27 Oct. 29 Oct. 30 Oct. 31 Account: Accounts Receivable. Account No. 12 Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 241 Oct. 29 Account: Supplies Account No. 13 Balance Date Item Post. Ref. Debit Credit Debit 2014, Oct. 14) Credit A Account: Prepaid Insurance Account No. 14. Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 15 Account: Equipment Account No. 16 Balance Date Item Post. Ref. Debit Credit Debit Credit >2014, 917 Oct. 13 Account: Truck Account No. 18 Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 10 Account: Notes Payable Account No. 21 Balance Date Item Post. Ref. Debit Credit Debit 2014, Oct. 10 Account: Accounts Payable Account No. 22 Credit Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 13 Oct. 21 Oct. 26 888 Account: Common Stock Account No. 31 Balance Date Item Post. Ref. Debit Credit Debit Credit Account: Dividends Account No. 33 Balance Date Item Post. Ref. Debit Credit Debit 2014, Oct. 31 Account: Fees Earned Account No. 41 Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 15 Oct. 24 Account: Wages Expense Account No. 51 Balance Credit Date Item Post. Ref. Debit Credit Debit 2014, Oct. 30 Credit Account: Rent Expense Account No. 53. Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 4 91F Account: Utilities Expense Account No. 54 Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 27 Account: Truck Expense Account No. 55 Date Item Post. Ref. Debit Credit Debit Balance Credit B YouTube Maps M Gmail Account: Miscellaneous Expense Account No. 59 Balance Date Item Post. Ref. Debit Credit Debit Credit 2014, Oct. 27 Feedback Check My Work 1. Identify which accounts are affected in each transaction. Keep in mind that every transaction involves at least two accounts. Determine whether the account increases a each increase or decrease following the rules of debit and credit Use the Posting Reference column to enter the corresponding account number from the general ledger a debits should equal total credits in your entries 2. See the illustration in Exhibit 4 below The 4-column accounts ledger is a more formal presentation of the T accounts. The Posting Reference column should have the pa 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 ent column ledger, making sure to maintain the correct normal balance and double-checking any non-normal balances to see if they are vald or possible Common Transaction Terminology Debit. Received cash for services provided: Services provided on account Received cash on account Cash Journal Entry Account Accounts Receivable Cash Credit Fees Earned Fees Earned Accounts Receivable