On July 1 2015 Andrea Robson established an interior decorating
On July 1, 2015, Andrea Robson established an interior decorating business, Finishing Designs. During the month, Andrea completed the following transactions:
July 1. Andrea transferred cash from a personal bank account to an account to be used for the business, $18,000.
4. Paid rent for period of July 4 to end of month, $1,750.
13. Purchased equipment on account, $7,000.
14. Purchased supplies for cash, $1,200.
15. Received cash for job completed, $7,500.
21. Paid creditor a portion of the amount owed for equipment purchased on July 13, $2,500.
24. Recorded jobs completed on account and sent invoices to customers, $8,600.
27. Paid utilities expense, $900.
31. Withdrew cash for personal use, $2,000.
1. Journalize each transaction in a two-column journal, 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.) Journal entry explanations may be omitted.
2. Post the journal to a ledger of three-column accounts, inserting appropriate posting references as each item is posted. Extend the balances after each transaction is posted, and note whether the balance is a debit or credit.
3. Prepare an unadjusted trial balance as at July 31, 2015.
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