On June 1, 2019, Kris Storey established an interior decorating business, Eco-Centric Designs. During the month,...

 

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On June 1, 2019, Kris Storey established an interior decorating business, Eco-Centric Designs. During the month, Kris completed the following transactions related to the business: 1 Kris transferred cash from a personal bank account to an account to be used for the June business, $35,000. Paid rent for period of June 1 to end of month, $4,750. Purchased office equipment on account, $14,100. 8 Purchased a van for $28,500 paying $4,500 cash and giving a note payable for the remainder. 10 Purchased supplies for cash, $2,380. 12 Received cash for job completed, $12,200. 15 Paid annual premiums on property and casualty insurance, $3,600. 23 Recorded jobs completed on account and sent invoices to customers, $11,900. 24 Received an invoice for van expenses, to be paid in June, $1,500. Required: 1. Journalize each transaction in a two-column journal beginning on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the post reference numbers until you have posted the entry to the general ledger in part 2.) 2. Post (in chronological order) the journal to a ledger of four-column accounts, inserting appropriate posting references in both the journal and the ledger 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 Eco-Centric Designs as of June 30, 2019. 4. Determine the excess of revenues over expenses for June. 5. Can you think of any reason why the amount determined in (4) might not be the net income for June? General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 13 Supplies EXPENSES 14 Prepaid Insurance 51 Wages Expense 16 Equipment 53 Rent Expense 18 Van 54 Utilities Expense 55 Van expense LIABILITIES 59 Miscellaneous Expense 21 Notes Payable 22 Accounts Payable EQUITY 31 Kris Storey, Capital 32 Kris Storey, Drawing Enter the following transactions on Page 2 of the two-column journal: June 29 Paid utilities expense, $3,100. 29 Paid miscellaneous expenses, $950. 30 Received cash from customers on account, $7,330. 30 Paid wages of employees, $5,070. 30 Paid creditor a portion of the amount owed for equipment purchased on June 6, $6,825. 30 Withdrew cash for personal use, $1,600. On June 1, 2019, Kris Storey established an interior decorating business, Eco-Centric Designs. During the month, Kris completed the following transactions related to the business: 1 Kris transferred cash from a personal bank account to an account to be used for the June business, $35,000. Paid rent for period of June 1 to end of month, $4,750. Purchased office equipment on account, $14,100. 8 Purchased a van for $28,500 paying $4,500 cash and giving a note payable for the remainder. 10 Purchased supplies for cash, $2,380. 12 Received cash for job completed, $12,200. 15 Paid annual premiums on property and casualty insurance, $3,600. 23 Recorded jobs completed on account and sent invoices to customers, $11,900. 24 Received an invoice for van expenses, to be paid in June, $1,500. Required: 1. Journalize each transaction in a two-column journal beginning on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the post reference numbers until you have posted the entry to the general ledger in part 2.) 2. Post (in chronological order) the journal to a ledger of four-column accounts, inserting appropriate posting references in both the journal and the ledger 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 Eco-Centric Designs as of June 30, 2019. 4. Determine the excess of revenues over expenses for June. 5. Can you think of any reason why the amount determined in (4) might not be the net income for June? General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 13 Supplies EXPENSES 14 Prepaid Insurance 51 Wages Expense 16 Equipment 53 Rent Expense 18 Van 54 Utilities Expense 55 Van expense LIABILITIES 59 Miscellaneous Expense 21 Notes Payable 22 Accounts Payable EQUITY 31 Kris Storey, Capital 32 Kris Storey, Drawing Enter the following transactions on Page 2 of the two-column journal: June 29 Paid utilities expense, $3,100. 29 Paid miscellaneous expenses, $950. 30 Received cash from customers on account, $7,330. 30 Paid wages of employees, $5,070. 30 Paid creditor a portion of the amount owed for equipment purchased on June 6, $6,825. 30 Withdrew cash for personal use, $1,600.

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Answer Eco Centric Designs Journal Enteries Date Particulars Debit in Credit in 16... View the full answer