On April 1, 2010, Jose Guadalupe established an interior decorating business, Lodge Designs. During the month, Jose completed the following transactions related to the business:

Apr. 1. Jose transferred cash from a personal bank account to an account to be used for the business, $15,000.

2. Paid rent for period of April 2 to end of month, $2,350.

6. Purchased office equipment on account, $10,000.

8. Purchased a used truck for $21,000, paying $2,000 cash and giving a note payable for the remainder.

10. Purchased supplies for cash, $1,200.

12. Received cash for job completed, $8,500.

15. Paid annual premiums on property and casualty insurance, $1,800.

23. Recorded jobs completed on account and sent invoices to customers, $6,000.

24. Received an invoice for truck expenses, to be paid in April, $1,000.

29. Paid utilities expense, $1,100.

29. Paid miscellaneous expenses, $500.

30. Received cash from customers on account, $3,500.

30. Paid wages of employees, $3,000.

30. Paid creditor a portion of the amount owed for equipment purchased on April 6, $2,500.

30. Withdrew cash for personal use, $1,750.

Instructions

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.) Explanations may be omitted.

2. 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.
3. Prepare an unadjusted trial balance for Lodge Designs as of April 30,2010.

Transcribed Image Text:

31 Jose Guadalupe, Capital 32 Jose Guadalupe, Drawing 41 Fees Earned 51 Wages Expense 53 Rent Expense 54 Utilities Expense 55 Truck Expense 59 Miscellaneous Expense 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 16 Equipment 18 Truck 21 Notes Payable 22 Accounts Payable