Question

Journal Entries and Trial Balance

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, $23,700.
	4	Paid rent for period of October 4 to end of month, $2,300.
	10	Purchased a used truck for $20,000, paying $2,000 cash and giving a note payable for the remainder.
	13	Purchased equipment on account, $9,240.
	14	Purchased supplies for cash, $1,590.
	15	Paid annual premiums on property and casualty insurance, $3,560.
	15	Received cash for job completed, $9,950.

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, $3,290.
	24	Recorded jobs completed on account and sent invoices to customers, $11,330.
	26	Received an invoice for truck expenses, to be paid in November, $1,040.
	27	Paid utilities expense, $1,190.
	27	Paid miscellaneous expenses, $430.
	29	Received cash from customers on account, $4,740.
	30	Paid wages of employees, $3,150.
	31	Paid dividends, $2,630. 2. Post (in chronological order) the journal to a ledger of four-column accounts, inserting appropriate posting references in the general journal as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted. If an amount box does not require an entry, leave it blank. General Ledger Account Cash ACCOUNT NO. 11 Balance Date Item Post. Ref. Debit Credit Debit Credit 2018 Oct. 1 1 Oct. 4 1 Oct. 10 1 Oct. 14 1 Oct. 15 1 Oct. 15 1 Oct. 21 2 Oct. 27 2 Oct. 27 2 Oct. 29 2 Oct. 30 2 Oct. 31 2 Account Accounts Receivable ACCOUNT NO. 12 Balance Date Item Post. Ref. Debit Credit Debit Credit 2018 Oct. 24 2 Oct. 29 2 Account Supplies ACCOUNT NO. 13 Balance Date Item Post. Ref. Debit Credit Debit Credit 2018 Oct. 14 1 Account Prepaid Insurance ACCOUNT NO. 14 Balance Date Item Post. Ref. Debit Credit Debit Credit 2018 Oct. 15 1 Account Equipment ACCOUNT NO. 16 Balance Date Item Post. Ref. Debit Credit Debit Credit 2018 Oct. 13 1 Account Truck ACCOUNT NO. 18 Balance Date Item Post. Ref. Debit Credit Debit Credit 2018 Oct. 10 1 Account Notes Payable ACCOUNT NO. 21 Balance Date Item Post. Ref. Debit Credit Debit Credit 2018 Oct. 10 1 Account Accounts Payable ACCOUNT NO. 22 Balance Date Item Post. Ref. Debit Credit Debit Credit 2018 Oct. 13 1 Oct. 21 2 Oct. 26 2 Account Common Stock ACCOUNT NO. 31 Balance Date Item Post. Ref. Debit Credit Debit Credit 2018 Oct. 1 1 Account Dividends ACCOUNT NO. 33 Balance Date Item Post. Ref. Debit Credit Debit Credit 2018 Oct. 31 2 Account Fees Earned ACCOUNT NO. 41 Balance Date Item Post. Ref. Debit Credit Debit Credit 2018 Oct. 15 1 Oct. 24 2 Account Wages Expense ACCOUNT NO. 51 Balance Date Item Post. Ref. Debit Credit Debit Credit 2018 Oct. 30 2 Account Rent Expense ACCOUNT NO. 53 Balance Date Item Post. Ref. Debit Credit Debit Credit 2018 Oct. 4 1 Account Utilities Expense ACCOUNT NO. 54 Balance Date Item Post. Ref. Debit Credit Debit Credit 2018 Oct. 27 2 Account Truck Expense ACCOUNT NO. 55 Balance Date Item Post. Ref. Debit Credit Debit Credit 2018 Oct. 26 2 Account Miscellaneous Expense ACCOUNT NO. 59 Balance Date Item Post. Ref. Debit Credit Debit Credit 2018 Oct. 27 2

Answer 1

1.

Date	General Journal	Debit	Credit
2018		$	$
Oct 1	Cash	23,700
	Common Stock		23,700
Oct 4	Rent Expense	2,300
	Cash		2,300
Oct 10	Truck	20,000
	Cash		2,000
	Notes Payable		18,000
Oct 13	Equipment	9,240
	Accounts Payable		9,240
Oct 14	Supplies	1,590
	Cash		1,590
Oct 15	Prepaid Insurance	3,560
	Cash		3,560
Oct 15	Cash	9,950
	Fees Earned		9,950
Oct 21	Accounts Payable	3,290
	Cash		3,290
Oct 24	Accounts Receivable	11,330
	Fees Earned		11,330
Oct 26	Truck Expense	1,040
	Accounts Payable		1,040
Oct 27	Utilities Expense	1,190
	Cash		1,190
Oct 27	Miscellaneous Expense	430
	Cash		430
Oct 29	Cash	4,740
	Accounts Receivable		4,740
Oct 30	Wages Expense	3,150
	Cash		3,150
Oct 31	Dividends	2,630
	Cash		2,630

2.

Account	Cash			Account No.	11
Date	Item	Post Ref.	Debit	Credit	Balance
Oct 1	Capital introduced	1	23,700		23,700
Oct 4	Rent	1		2,300	21,400
Oct 10	Truck	1		2,000	19,400
Oct 14	Supplies	1		1,590	17,810
Oct 15	Annual Insurance premium	1		3,560	14,250
Oct 15	Fees earned	1	9,950		24,200
Oct 21	Payment on account	2		3,290	20,910
Oct 27	Utilities expense	2		1,190	19,720
Oct 27	Miscellaneous expenses	2		430	19,290
Oct 29	Collection of accounts receivable	2	4,740		24,030
Oct 30	Wages	2		3,150	20,880
Oct 31	Dividends	2		2,630	18,250
Account	Accounts Receivable			Account No.	12
Date	Item	Post Ref.	Debit	Credit	Balance
Oct 24		2	11,330		11,330
Oct 29		2		4,740	6,590
Account	Supplies			Account No.	13
Date	Item	Post Ref.	Debit	Credit	Balance
Oct 14	Purchase	1	1,590		1,590
Account	Prepaid Insurance			Account No.	14
Date	Item	Post Ref.	Debit	Credit	Balance
Oct 15	Annual premium	1	3,560		3,560
Account	Equipment			Account No.	16
Date	Item	Post Ref	Debit	Credit	Balance
Oct 13	Purchase	1	9,240		9,240
Account	Truck			Account No.	18
Date	Item	Post Ref.	Debit	Credit	Balance
Oct 10	Purchase	1	20,000		20,000
Account	Notes Payable			Account No.	21
Date	Item	Post Ref	Debit	Credit	Balance
Oct 10	Issue	1		18,000	18,000
Account	Accounts Payable			Account No.	22
Date	Item	Post Ref	Debit	Credit	Balance
Oct 13	Equipment purchase	1		9,240	9,240
Oct 21	Payment	2	3,290		5,950
Oct 26	Truck Expense	2		1,040	6,990
Account	Common Stock			Account No.	31
Date	Item	Post Ref.	Debit	Credit	Balance
Oct 1	Issuance of common shares	1		23,700	23,700
Account	Dividends			Account No.	33
Date	Item	Post Ref.	Debit	Credit	Balance
Oct 31	Cash Dividends	2	2,630		2,630
Account	Fees Earned			Account No.	41
Date	Item	Post Ref.	Debit	Credit	Balance
Oct 15	Cash sale	1		9,950	9,950
Oct 24	Credit sale	2		11,330	21,280
Account	Wages Expense			Account No.	51
Date	Item	Post Ref.	Debit	Credit	Balance
Oct 30	Wages paid		3,150		3,150
Account	Rent Expense			Account No.	53
Date	Item	Post Ref.	Debit	Credit	Balance
Oct 4	Rent	1	2,300		2,300
Account	Utilities Expense			Account No.	54
Date	Item	Post Ref.	Debit	Credit	Balance
Oct 27	Utilities	2	1,190		1,190
Account	Truck Expense			Account No.	55
Date	Item	Post Ref.	Debit	Credit	Balance
Oct 26	Truck expense	2	1,040		1,040
Account	Miscellaneous Expense			Account No.	59
Date	Item	Post Ref.	Debit	Credit	Balance
Oct 27	Miscellaneous expense	2	430		430

3.

Pioneer Designs Trial Balance October 31, 2018
Account Titles	Debit	Credit
	$	$
Cash	18,250
Accounts Receivable	6,590
Supplies	1,590
Prepaid Insurance	3,560
Equipment	9,240
Truck	20,000
Notes Payable		18,000
Accounts Payable		6,990
Common Stock		23,700
Dividends	2,630
Fees Earned		21,280
Wages Expense	3,150
Rent Expense	2,300
Utilities Expense	1,190
Truck Expense	1,040
Miscellaneous Expense	430
Totals	$ 69,970	$ 69,970