Question

PR 2-3A   Journal entries and trial balance   OBJ. 1, 2, 3, 4
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, $35,000.
1. Paid rent for period of June 1 to end of month, $4,750.
6. Purchased office equipment on account, $14,100.
8. Purchased a van for $28,500 paying $4,500 cash and giving a note payable for the remainder.
10. Purchased supplies for cash, $2,380. 12. Received cash for job completed, $12,200. 15. Paid annual premiums on property and casualty insurance, $3,600. 23. Recorded jobs completed on account and sent invoices to customers, $11,900. 24. Received an invoice for van expenses, to be paid in June, $1,500.

Answer 1

JOURNAL ENTRIES

Date	Particulars	Debit Amount	Credit Amount
01/06/2019	RENT EXP	4750.00
	Cash		4750.00
	RENT FOR OFFICE PAID FOR JUNE MONTH
01/06/2019	KRIS CAPITAL ACCOUNT		35000.00
	Cash	35000.00
	BEINGH THE CASH BROUGHT INTO THE BUSINESS BY KRIS
06/06/2019	VAN	28500.00
	Cash		4500.00
	NOTES PAYABLE FOR VAN		24000.00
	VAN PURCHASED FOR 28500 OUT OF 4500 PAID IN CASH AND THE REMAINING AMOUNT PAID BY NOTES PAYABLE
06/06/2019	OFFICE EQUIPMENT	14100.00
	OFFICE EQUIPMENT VENDOR		14100.00
	PURCHASE OF OFFICE EQUIPMENT OF 14100 ON ACCOUNT
10/06/2019	PURCHASES ACCOUNTS	2380.00
	Cash		2380.00
	PURCHASED SUPPLIES FOR CASH 2380
12/06/2019	SALES ACCOUNT		12200.00
	Cash	12200.00
	RECEIVED CASH FOR JOB COMPLETED
15/06/2019	INSURANCE PREMIUM EXP	3600.00
	Cash		3600.00
	INSURANCE PREMIUM EXP PAID 3600 IN CASH
23/06/2019	ACCOUNT RECEIVABLES	11900.00
	SALES ACCOUNT		11900.00
	JOB COMPLETED AND BILL INVOICED TO CUSTOMER
24/06/2019	VAN EXPENSES	1500.00
	VAN EXPENSES PAYABLE		1500.00
	RECEIVED INVOICE FOR VAN EXPENSES

TRAIL BALANCE

Particulars	Debit	Credit
Capital Account
KRIS CAPITAL ACCOUNT		35000.00
Current Liabilities
Sundry Creditors
NOTES PAYABLE FOR VAN		24000.00
OFFICE EQUIPMENT VENDOR		14100.00
VAN EXPENSES PAYABLE		1500.00
Fixed Assets
OFFICE EQUIPMENT	14100.00
VAN	28500.00
Current Assets
ACCOUNT RECEIVABLES	11900.00
Cash-in-hand	31970.00
Sales Accounts
SALES ACCOUNT		24100.00
Purchase Accounts
PURCHASES ACCOUNTS	2380.00
Indirect Expenses
INSURANCE PREMIUM EXP	3600.00
RENT EXP	4750.00
VAN EXPENSES	1500.00
Grand Total	98700.00	98700.00