Reference no: EM132466081

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

Point 1 Kris transferred cash from a personal bank account to an account to be used for the business, $27,750.

Point 1 Paid rent for period of June 1 to end of month, $3,800.

Point 6 Purchased office equipment on account, $12,800.

Point 8 Purchased a van for $32,900 paying $6,100 cash and giving a note payable for the remainder.

Point 10 Purchased supplies for cash, $1,510.12Received cash for job completed, $8,300.

Point 15 Paid annual premiums on property and casualty insurance, $2,200.

Point 23 Recorded jobs completed on account and sent invoices to customers, $12,220.

Point 24 Received an invoice for van expenses, to be paid in June, $1,010.

Enter the following transactions on Page 2 of the two-column journal:

June

Point 29 Paid utilities expense, $3,510.

Point 29 Paid miscellaneous expenses, $1,680.

Point 30 Received cash from customers on account, $7,300.

Point 30 Paid wages of employees, $4,550.

Point 30 Paid creditor a portion of the amount owed for equipment purchased on June 6, $6,120.

Point 30 Withdrew cash for personal use, $2,400.

Required:

Question 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.)

Question 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.

Question 3. it is asking me to make an unadjusted trial balance for Eco-Centric Designs as of June 30, 2019.

Question 4. Determine the excess of revenues over expenses for June.

Question 5. Can you think of any reason why the amount determined in (4) might not be the net income for June?

CHART OF ACCOUNTS

Eco-Centric

Designs

General Ledger

ASSETS :11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 16 Office Equipment 18 Van

LIABILITIES: 21 Notes Payable 22 Accounts Payable

EQUITY :31 Kris Storey, Capital 32 Kris Storey, Drawing

REVENUE :41 Fees Earned

EXPENSES : 51 Wages Expense 53 Rent Expense 54 Utilities Expense 55 Van Expense 59 Miscellaneous Expense