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Social ScienceOn October 1, 2019, Jay Pryor established an interior decorating business, Pioneer De-signs. During the month, Jay completed the following transactions related to the businessOct1. Jay transferred cash from a personal bank account to an account to be used forthe business, $18,0004. Paid rent for period of October 4 to end of month, $3,000.10. Purchased a used truck for $23,750, paying $3,750 cash and giving a notepayable for the remainder13. Purchased equipment on account, $10,500.14. Purchased supplies for cash, $2,100.15. Paid annual premiums on property and casualty insurance, $3,600.15. Received cash for job completed, $8,950.Enter the following transactions on Page 2 of the two-column journal21. Paid creditor a portion of the amount owed for equipment purchased on October13, $2,000orded jobs completed on account and sent invoices to customers, $14,1502426. Received an invoice for truck expenses, to be paid in November, $700.27. Paid utilities expense, $2,24027. Paid miscellaneous expenses, $1,100 Oct. 29. Received cash from customers on account, $7,600Paid wages of employees, $4,800Withdrew cash for personal use, $3,5003031.Instructions1. Journalize each transaction in a two-column journal beginning on Page 1, referring tothe 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 explana-tions may be omitted.31 Jay Pryor, Capital32 Jay Pryor, Drawing11 Cash12 Accounts Receivable13 Supplies14 Prepaid Insurance16 Equipment18 Truck41 Fees Earned51 Wages Expense53 Rent Expense54 Utilities Expense55 Truck Expense59 Miscellaneous Expense21 Notes Payable22 Accounts Payable2. Post the journal to a ledger of four-column accounts, inserting appropriate postingreferences as each item is posted. Extend the balances to the appropriate balancecolumns after each transaction is posted3. Prepare an unadjusted trial balance for Pioneer Designs as of October 31, 2019.4. Determine the excess of revenues over expenses for October.Can you think of any reason why the amount determined in (4) might not be5.the net income for October?
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On October 1, 2019, Jay Pryor established an interior decorating business, Pioneer De- signs. During the month, Jay completed the following transactions related to the business Oct 1. Jay transferred cash from a personal bank account to an account to be used for the business, $18,000 4. Paid rent for period of October 4 to end of month, $3,000. 10. Purchased a used truck for $23,750, paying $3,750 cash and giving a note payable for the remainder 13. Purchased equipment on account, $10,500. 14. Purchased supplies for cash, $2,100. 15. Paid annual premiums on property and casualty insurance, $3,600. 15. Received cash for job completed, $8,950. Enter the following transactions on Page 2 of the two-column journal 21. Paid creditor a portion of the amount owed for equipment purchased on October 13, $2,000 orded jobs completed on account and sent invoices to customers, $14,150 24 26. Received an invoice for truck expenses, to be paid in November, $700. 27. Paid utilities expense, $2,240 27. Paid miscellaneous expenses, $1,100
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Oct. 29. Received cash from customers on account, $7,600 Paid wages of employees, $4,800 Withdrew cash for personal use, $3,500 30 31. 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.) Journal entry explana- tions may be omitted. 31 Jay Pryor, Capital 32 Jay Pryor, Drawing 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 16 Equipment 18 Truck 41 Fees Earned 51 Wages Expense 53 Rent Expense 54 Utilities Expense 55 Truck Expense 59 Miscellaneous Expense 21 Notes Payable 22 Accounts Payable 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 Pioneer Designs as of October 31, 2019. 4. Determine the excess of revenues over expenses for October. Can you think of any reason why the amount determined in (4) might not be 5. the net income for October?
Expert Answer
1. Record Journal entries for the transactions as shown below:
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General Journal Post Accounts title and explanation Ref. Date Debit Credit 01-Oct Cash $18,000 Jay Pryor, capital (To record capital bought into business $18,000 04-Oct Rent expense $3,000 $3.000 Cash (To record payment of rent for October) 10-Oct Truck $23,750 $3,750 $20,000 Cash Note payable (To record purchase of truck by partial payment of cash and note payable)
Continuation of journals
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13-Oct Equipment $10,500 $10,500 Accounts payable (To record purchase of equipment on account) 14-Oct Supplies $2,100 S2,100 Cash (To record purchase of supplies for cash) $3,000 15-Oct Prepaid insurance $3,000 Cash (To record payment of annual premium and casualty insurance) 15-Oct Cash S8,950 S8,950 Fees earned (To record earning for job completed)
Continuation of journal...
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21-Oct Accounts payable $2,000 $2,000 Cash (To record payment made to creditors) 24-Oct Accounts receivable $14,150 Fees earned $14,150 (To record invoices billed to customers) 26-Oct Truck expense $700 Accounts payable (To record truck expenses to be paid) $700 27-Oct Utilities expense S2,240 $2,240 Cash To record payment of utilities expense) 27-Oct Miscellaneous expense $1,100 Cash $1,100 (To record payment of miscellaneous expense)
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