On October 1, 2018, 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, $33,900.
	4	Paid rent for period of October 4 to end of month, $3,290.
	10	Purchased a used truck for $28,000, paying $3,000 cash and giving a note payable for the remainder.
	13	Purchased equipment on account, $13,220.
	14	Purchased supplies for cash, $2,270.
	15	Paid annual premiums on property and casualty insurance, $5,090.
	15	Received cash for job completed, $14,240.

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, $4,710.
	24	Recorded jobs completed on account and sent invoices to customers, $16,200.
	26	Received an invoice for truck expenses, to be paid in November, $1,490.
	27	Paid utilities expense, $1,700.
	27	Paid miscellaneous expenses, $610.
	29	Received cash from customers on account, $6,780.
	30	Paid wages of employees, $4,510.
	31	Paid dividends, $3,760.

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. For a compound transaction, if an amount box does not require an entry, leave it blank.

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

General Journal Page 1 Date 2018 Oct. 1 Description Post. Ref Credit Oct. 4 Oct. 10 Oct. 13 Oct. 15 Oct. 15 General Journal Page 2 Description Post. Ref Credit 2018 Oct. 21 Oct. 24 Oct. 26 Oct. 27 Oct. 27 Oct. 29 Oct. 30 Oct. 31 2. Post (in chronological order) the journal to a ledger of four-column accounts, inserting appropriate posting references in the general journal as each item is posted. does not require an entry, leave it blank. General Ledger Account Cash ACCOUNT NO. Balance Date Item Post. Ref Debit Credit Debit Credit 2018 Oct. 1 Oct. 4 Oct. 10 Oct. 14 Oct. 15 Oct. 15 Oct. 21 Oct. 27 Oct. 27 Oct. 29 Oct. 30 Oct. 31 Account Accounts Receivable ACCOUNT NO. 12 Balance Date Item Post. Ref Debit Credit Debit Credit 2018 Oct. 24 Oct. 29 Account Supplies ACCOUNT NO. 13 Balance Date Item Post. Ref Debit Credit Debit Credit 2018 Oct. 14 Account Prepaid Insurance ACCOUNT NO. 14 Balance Date Item Post. Ref Debit Credit Debit Credit 2018 Oct. 15 16 ACCOUNT NO. Equipment Balance Credit Debit Credit Debit Item Post. Ref Date 2018 Oct. 13 18 ACCOUNT NO. Truck Balance Credit Debit Credit Debit Item Post. Ref Date 2018 Oct. 10 21 ACCOUNT NO. Notes Payable Account Balance Credit Debit Credit Debit Item Post. Ref Date 2018 Oct. 10 Accounts Payable ACCOUNT NO. Balance Date Item Post. Ref Debit Debit Credit 2018 Oct. 13 Oct. 21 Oct. 26 Account Common Stock ACCOUNT NO. 31 Balance Date Item Post. Ref Debit Debit 2018 Oct. 1 ACCOUNT NO. Balance Date Item Post. Ref Debit Debit Credit 2018 Oct. 31 41 ACCOUNT NO. Fees Earned Account Balance Credit Debit Credit Debit Post. Ref Item Date 2018 Oct. 15 Oct. 24 51 ACCOUNT NO. Wages Expense Account Balance Credit Debit Credit Debit Post. Ref Item Date 2018 Oct. 30 53 ACCOUNT NO. Rent Expense Account Balance Credit Debit Credit Debit Post. Ref Item Date 2018 Oct. 4 Pioneer Designs Unadjusted Trial Balance october 31, 2018 Credit Balances Debit Balances Accounts Receivable Totals 4. Determine the excess of revenues over expenses for October. 5. Why the amount determined in above might not be the net income for October? 1. Because the dividends are declared but not paid 2. Because the cash balance is incorrect 3. Because the closing inventory balance is missing 4. Because necessary adjustment to expenses, like depreciation has not been made