On October 1, 20Y4, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business: October 1. Jay transferred cash from a personal bank account to an account to be used for the business, $33,400. October 4. Paid rent for period of October 4 to end of month, $3,240. October 10. Purchased a used truck for $28,000, paying $3,000 cash and giving a note payable for the remainder. October 13. Purchased equipment on account, $13,030. October 14. Purchased supplies for cash, \$2,240. October 15. Paid annual premiums on property and casualty insurance, $5,010. October 15. Received cash for job completed, $14,030. Enter the following transactions on Page 2 of the two-column journal: October 21. Paid creditor a portion of the amount owed for equipment purchased on October 13,$4,640. October 24. Recorded jobs completed on account and sent invoices to customers, \$15,970. October 26. Received an invoice for truck expenses, to be paid in November, $1,470. October 27. Paid utilities expense, $1,670. October 27. Paid miscellaneous expenses, $600. October 29. Received cash from customers on account, $6,680. October 30. Paid wages of employees, $4,440. October 31. Paid cash to owner for personal use, $3,710. an entry, leave it blank. Cash Accounts Receivable Supplies Prepaid Insurance Equipment Truck Notes Payable Accounts Payable Jay Pryor, Capital Jay Pryor, Drawing Fees Earned Wages Expense Rent Expense Utilities Expense Truck Expense Miscellaneous Expense Date Description Post. Ref. Debit Credit 20Y4, October 1 October 4 October 10 October 13 October 14 October 15-Insurance October 15-Fees General Journal Page 2 amount box does not require an entry, leave it blank. General Ledger \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{3}{|c|}{ Account : Cash } & & & \multicolumn{2}{|c|}{ Account No. 11} \\ \hline Date & Item & Post. Ref. & Debit & Credit & \begin{tabular}{c} Balance \\ Debit \end{tabular} & \begin{tabular}{c} Balance \\ Credit \end{tabular} \\ \hline 20Y4, & & & & & & \\ \hline October 1 & & & & & & \\ \hline October 4 & & & & & & \\ \hline October 10 & & & & & & \\ \hline October 14 & & & & & & \\ \hline October 15 & & & & & & \\ \hline October 15 & & & & & & \\ \hline October 21 & & & & & & \\ \hline October 27 & & & & & & \\ \hline October 27 & & & & & & \\ \hline October 29 & & & & & & \\ \hline October 30 & & & & & & \\ \hline October 31 & & & & & & \\ \hline \end{tabular} Account : Accounts Receivable Account No. 12 \begin{tabular}{|c|c|c|c|c|c|c|} \hline Date & Item & Post. Ref. & Debit & Credit & \begin{tabular}{c} Balance \\ Debit \end{tabular} & \begin{tabular}{c} Balance \\ Credit \end{tabular} \\ \hline 20Y4, & & & & & & \\ \hline October 24 & & & & & & \\ \hline October 29 & & & & & & \\ \hline \end{tabular} Account : Supplies Account No. 13 \begin{tabular}{|c|c|c|c|c|c|c|} \hline Date & Item & Post. Ref. & Debit & Credit & \begin{tabular}{c} Balance \\ Debit \end{tabular} & \begin{tabular}{c} Balance \\ Credit \end{tabular} \\ \hline \multicolumn{7}{|l|}{20Y4} \\ \hline \multicolumn{7}{|l|}{ October 14} \\ \hline Account : & epaid & nsurance & & & \multicolumn{2}{|c|}{ Account No. 14} \\ \hline Date & Item & Post. Ref. & Debit & Credit & \begin{tabular}{c} Balance \\ Debit \end{tabular} & \begin{tabular}{c} Balance \\ Credit \end{tabular} \\ \hline \multicolumn{7}{|l|}{\( 20 Y 4} \), \\ \hline October 15 & & & & & & \\ \hline \end{tabular} Account : Prepaid Insurance Account No. 14 \begin{tabular}{lcccccc} \hline \multicolumn{1}{c}{ Date } & Item & Post. Ref. & Debit & Credit & \begin{tabular}{c} Balance \\ Debit \end{tabular} & \begin{tabular}{c} Balance \\ Credit \end{tabular} \\ \hline 20Y4, & & & & & & \\ October 15 & & & & & & \\ \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Account : Equipment } & \multicolumn{2}{|c|}{ Account No. 16} \\ \hline Date & Item & Post. Ref. & Debit & Credit & \begin{tabular}{c} Balance \\ Debit \end{tabular} & \begin{tabular}{c} Balance \\ Credit \end{tabular} \\ \hline \multicolumn{7}{|l|}{20Y4} \\ \hline \multicolumn{7}{|l|}{ October 13} \\ \hline \multicolumn{5}{|c|}{ Account : Truck } & \multicolumn{2}{|c|}{ Account No. 18} \\ \hline Date & Item & Post. Ref. & Debit & Credit & \begin{tabular}{c} Balance \\ Debit \end{tabular} & \begin{tabular}{c} Balance \\ Credit \end{tabular} \\ \hline \multicolumn{7}{|l|}{ 20Y4, } \\ \hline \multicolumn{7}{|l|}{ October 10} \\ \hline Account & Notes & ayable & & & \multicolumn{2}{|c|}{ Account No. 21} \\ \hline Date & Item & Post. Ref. & Debit & Credit & \begin{tabular}{c} Balance \\ Debit \end{tabular} & \begin{tabular}{c} Balance \\ Credit \end{tabular} \\ \hline \multicolumn{7}{|l|}{20Y4} \\ \hline October 10 & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Account : Fees Earned } & \multicolumn{2}{|c|}{ Account No. 41} \\ \hline Date & Item & Post. Ref. & Debit & Credit & \begin{tabular}{c} Balance \\ Debit \end{tabular} & \begin{tabular}{c} Balance \\ Credit \end{tabular} \\ \hline \multicolumn{7}{|l|}{20Y4} \\ \hline \multicolumn{7}{|l|}{ October 15} \\ \hline \multicolumn{7}{|l|}{ October 24} \\ \hline Account : & Wages & Expense & & & \multicolumn{2}{|c|}{ Account No. 51} \\ \hline Date & Item & Post. Ref. & Debit & Credit & \begin{tabular}{c} Balance \\ Debit \end{tabular} & \begin{tabular}{c} Balance \\ Credit \end{tabular} \\ \hline \multicolumn{7}{|l|}{20Y4} \\ \hline \multicolumn{7}{|l|}{ October 30} \\ \hline Account & : Rent & xpense & & & \multicolumn{2}{|c|}{ Account No. 53} \\ \hline Date & Item & Post. Ref. & Debit & Credit & \begin{tabular}{c} Balance \\ Debit \end{tabular} & \begin{tabular}{c} Balance \\ Credit \end{tabular} \\ \hline \multicolumn{7}{|l|}{20Y4} \\ \hline \multicolumn{7}{|l|}{ October 4} \\ \hline Account : & Utilities & Expense & & & \multicolumn{2}{|c|}{ Account No. 54} \\ \hline Date & Item & Post. Ref. & Debit & Credit & \begin{tabular}{c} Balance \\ Debit \end{tabular} & \begin{tabular}{c} Balance \\ Credit \end{tabular} \\ \hline \multicolumn{7}{|l|}{20Y4} \\ \hline October 27 & & & & & & \\ \hline \end{tabular} Arrnitnt - Trk Fxnence Pioneer Designs Unadjusted Trial Balance October 31, 20 Y4 \begin{tabular}{|c|c|c|c|} \hline & \begin{tabular}{c} Account \\ No. \end{tabular} & Debit Balances & Credit Balances \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline= & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} 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 Jay Pryor, Drawing 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