Question

On October 1, 2020, Isshita Karim established an interior decorating business, Isshita Designs. During the month, John completed the following transactions related to the business:

Oct.       1

.           Isshita transferred cash from a personal bank account to an account to be used for the business, $15,000.

              4.      Paid rent for the month of October, $1,100.

            10.      Purchased a used truck for $7,500, paying 1,500 cash and signing a note payable for the remainder.

            12.      Received $300 in advance for jobs to be performed in November.

13.      Purchased equipment on account, $3,100.

            14.      Purchased supplies for cash, $719.

            15.      Paid annual premiums for property and casualty insurance, $600.

            15.      Received cash for job completed, $1,950.

            21.      Paid creditor a portion of the amount owed for equipment purchased on October 13, $1,500.

            24.      Recorded jobs completed on account and sent invoices to customers, $2,500.

            26.      Received an invoice for truck expenses, to be paid in November, $175.

            27.      Paid utilities bills, $140.

            27.      Paid miscellaneous expenses, $90.

            29.      Received cash from customers on account, 1,700.

            30.      Paid wages to employees, $900.

            31.      Withdrew cash for personal use, $200.

Isshita Designs

Journal Entries

Date	Description	Post. Ref.	Debit	Credit

Date	Description	Post. Ref.	Debit	Credit

Answer 1

Date	Accounts & Explanation		Debit	Credit
Oct-01	Cash		$             15,000
	Owner's Capital			$         15,000
Oct-04	Rent expense		$               1,100
	Cash			$           1,100
Oct-10	Equipment-Truck		$               7,500
	Cash			$           1,500
	Note payable			$           6,000
Oct-12	Cash		$                  300
	Unearned Service Revenue			$              300
Oct-13	Equipment		$               3,100
	Accounts Payable			$           3,100
Oct-14	Supplies		$                  719
	Cash			$              719
Oct-15	Insurance expense		$                  600
	Cash			$              600
Oct-15	Cash		$               1,950
	Service Revenue			$           1,950
Oct-21	Accounts Payable		$               1,500
	Cash			$           1,500
Oct-24	Accounts Receivable		$               2,500
	Service Revenue			$           2,500
Oct-26	Truck expenses		$                  175
	Accounts Payable			$              175
Oct-27	Utilities expense		$                  140
	Cash			$              140
Oct-27	Miscllaneous expense		$                    90
	Cash			$                90
Oct-29	Cash		$               1,700
	Accounts receivable			$           1,700
Oct-30	Salaries and Wages expense		$                  900
	Cash			$              900
Oct-31	Owner's Capital-Drawings		$                  200
	Cash			$              200