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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 June Kris

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:

June 1.   Kris transferred cash from a personal bank account to an account to be used for the business, $35,000.
1.   Paid rent for period of June 1 to end of month, $4,750.
6.   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.
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.

Instructions

 

1. Journalize 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. (Do not insert the account numbers in the journal at this time.) Explanations may be omitted.

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

Apr 10 2021 View more View Less

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