Question

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	1.	Kris transferred cash from a personal bank account to an account to be used for the business, $23,300.
	4.	Paid rent for period of June 4 to end of month, $2,260.
	6.	Purchased a used truck for $19,000, paying $2,000 cash and giving a note payable for the remainder.
	8.	Purchased equipment on account, $9,090.
	10.	Purchased supplies for cash, $1,560.
	12.	Paid annual premiums on property and casualty insurance, $3,500.
	15.	Received cash for job completed, $9,790.

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

	23.	Paid creditor a portion of the amount owed for equipment purchased on June 13, $3,240.
	24.	Recorded jobs completed on account and sent invoices to customers, $11,140.
	25.	Received an invoice for truck expenses, to be paid in July, $1,030.
	26.	Paid utilities expense, $1,170.
	27.	Paid miscellaneous expenses, $420.
	28.	Received cash from customers on account, $4,660.
	29.	Paid wages of employees, $3,100.
	30.	Withdrew cash for personal use, $2,590.

Required:

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 explanations may be omitted. For a compound transaction, if an amount box does not require an entry, leave it blank.

11 Cash	31 Kris Storey, Capital
12 Accounts Receivable	32 Kris Storey, Drawing
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

Question A

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.

Question B Prepare an unadjusted trial balance for Eco-Centric Designs as of June 30, 2019. For those boxes in which no entry is required, leave the box blank. The first two account titles are filled in as an example.

Answer 1

1. Journalizing each transactions:-

Eco centric Designs

General Journal

June 30,2019

Date	Accounts	Debit	Credit
June 1	Cash	$23,300
	Kris Storey, Capital		$23,300
4	Rent Expense	$2,260
	Cash		$2,260
6	Truck	$19,000
	Cash		$2,000
	Notes Payable		$17,000
8	Equipment	$9,090
	Accounts Payable		$9,090
10	Supplies	$1,560
	Cash		$1,560
12	Prepaid Insurance	$3,500
	Cash		$3,500
15	Cash	$9,790
	Fees Earned		$9,790
23	Accounts Payable	$3,240
	Cash		$3,240
24	Accounts Receivable	$11,140
	Fees Earned		$11,140
25	Truck Expense	$1,030
	Accounts Payable		$1,030
26	Utilities Expense	$1,170
	Cash		$1,170
27	Miscellaneous Expenses	$420
	Cash		$420
28	Cash	$4,660
	Accounts Receivable		$4,660
29	Wages Expense	$3,100
	Cash		$3,100
30	Kris Storey, Drawing	$2,590
	Cash		$2,590

Posting the Transactions appropriate Accounts:-

Cash

Date	Amount	Date	Amount
June 1	$23,300	June 4	$2,260
15	9,790	6	2,000
28	4,660	10	1,560
		12	3,500
		23	3,240
		26	1,170
		27	420
		29	3,100
		30	2,590
		Balance	$17,910
Total	$37,750	Total	$37,750
Closing Bal.	$17,910

Accounts Receivable

Date	Amount	Date	Amount
June 24	$11,140	June 28	$4,660
		Balance	$6,480
Total	$11,140	Total	$11,140
Closing Bal.	$6,480

Supplies

Date	Amount	Date	Amount
June 10	$1,560	Balance	$1,560
Total	$1,560	Total	$1,560
Closing Bal.	$1,560

Prepaid Insurance

Date	Amount	Date	Amount
June 12	$3,500	Balance	$3,500
Total	$3,500	Total	$3,500
Closing Bal.	$3,500

Equipment

Date	Amount	Date	Amount
June 8	$9,090	Balance	$9,090
Total	$9,090	Total	$9,090
Closing Bal.	$9,090

Truck

Date	Amount	Date	Amount
June 6	$19,000	Balance	$19,000
Total	$19,000	Total	$19,000
Closing Bal.	$19,000

Notes Payable

Date	Amount	Date	Amount
Balance	$17,000	June 6	$17,000
Total	$17,000	Total	$17,000
		Closing Bal.	$17,000

Accounts Payable

Date	Amount	Date	Amount
June 23	$3,240	June 8	$9,090
Balance	$6,880	25	1,030
Total	$10,120	Total	$10,120
		Closing Balance	$6,880

Kris Storey, Capital

Date	Amount	Date	Amount
Balance	$23,300	June 1	$23,300
Total	$23,300	Total	$23,300
		Closing Bal.	$23,300

Kris Storey, Drawing

Date	Amount	Date	Amount
June 30	$2,590	Balance	$2,590
Total	$2,590	Total	$2,590
Closing Bal.	$2,590

Fees Earned

Date	Amount	Date	Amount
Balance	$20,930	June 15	$9,790
		24	11,140
Total	$20,930	Total	$20,930
		Closing Bal.	$20,930

Wages Expense

Date	Amount	Date	Amount
June 29	$3,100	Balance	$3,100
Total	$3,100	Total	$3,100
Closing Bal.	$3,100

Rent Expense

Date	Amount	Date	Amount
June 4	$2,260	Balance	$2,260
Total	$2,260	Total	$2,260
Closing Bal.	$2,260

Utilities Expense

Date	Amount	Date	Amount
June 26	$1,170	Balance	$1,170
Total	$1,170	Total	$1,170
Closing Bal.	$1,170

Truck Expense

Date	Amount	Date	Amount
June 25	$1,030	Balance	$1,030
Total	$1,030	Total	$1,030
Closing Bal.	$1,030

Miscellaneous Expenses

Date	Amount	Date	Amount
June 27	$420	Balance	$420
Total	$420	Total	$420
Closing Bal.	$420

Preparing an Unadjusted Trial Balance:-

Eco - Centric Designs

Unadjusted Trial Balance

June 30,2019

No.	Accounts	Debit	Credit
11	Cash	$17,910
12	Accounts Receivable	6,480
13	Supplies	1,560
14	Prepaid Insurance	3,500
16	Equipment	9,090
18	Truck	19,000
21	Notes Payable		$17,000
22	Accounts Payable		6,880
31	Kris Storey, Capital		23,300
32	Kris Storey, Drawing	2,590
41	Fees Earned		20,930
51	Wages Expense	3,100
53	Rent Expense	2,260
54	Utilities Expense	1,170
55	Truck Expense	1,030
59	Miscellaneous Expense	420
	Totals	$68,110	$68,110