In: Accounting
On October 1, 2018, Jay Pryor established an interior decorating business, Pioneer Designs. 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 in exchange for common stock, $30,200. |
4 | Paid rent for period of October 4 to end of month, $2,930. | |
10 | Purchased a used truck for $25,000, paying $2,000 cash and giving a note payable for the remainder. | |
13 | Purchased equipment on account, $11,780. | |
14 | Purchased supplies for cash, $2,020. | |
15 | Paid annual premiums on property and casualty insurance, $4,530. | |
15 | Received cash for job completed, $12,680. |
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, $4,200. | |
24 | Recorded jobs completed on account and sent invoices to customers, $14,440. | |
26 | Received an invoice for truck expenses, to be paid in November, $1,330. | |
27 | Paid utilities expense, $1,510. | |
27 | Paid miscellaneous expenses, $540. | |
29 | Received cash from customers on account, $6,040. | |
30 | Paid wages of employees, $4,020. | |
31 | Paid dividends, $3,350. |
Required:
1. Journalize and insert the posting references
for 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. For a compound transaction, if
an amount box does not require an entry, leave it blank.
11 | Cash | 31 | Common Stock |
12 | Accounts Receivable | 33 | Dividends |
13 | Supplies | 41 | Fees Earned |
14 | Prepaid Insurance | 51 | Wages Expense |
16 | Equipment | 53 | Rent Expense |
18 | Truck | 54 | Utilities Expense |
21 | Notes Payable | 55 | Truck Expense |
22 | Accounts Payable | 59 | Miscellaneous Expense |