Question

Required: 1. Journalize each transaction in a two-column journal beginning on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the post reference numbers until you have posted the entry to the general ledger in part 2.) Post (in chronological order) the journal to a ledger of four-column accounts, inserting appropriate posting references in both the journal and the ledger as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted. 3. Prepare an unadiusted trial balance for Eco-Centric Designs as of June 30, 2019. 4. Determine the excess of revenues over expenses for June. 5. Can you think of any reason why the amount determined in (4) might not be the net income for June? General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 13 Supplies EXPENSES 14 Prepaid Insurance 16 Equipment 18 Van 51 Wages Expense 53 Rent Expense 54 Utilities Expense 55 Van expense 59 Miscellaneous Expense LIABILITIES 21 Notes Payable 22 Accounts Payable
Answer #4 only please

Answer 1

4. Determination of the Excess of Revenue over Expenses : Credit Debit 21,755 4,570 2,380 3,600 14,100 28,500 Unadjusted Trial Balance : Particulars Cash Accounts Receivables Supplies Prepaid Insurance Equipment Van Notes Payable Accounts Payables Kris Storey, Capital Kris Storey, Drawings Fee Earned Wages Expense Rent Expense Utilities Expense Van Expense Miscellaneous Expense Total 24,000 8,775 35,000 1,600 24,100 5,070 4,750 3,100 1,500 950 91,875 91,875 $ Amount ($) Particulars Revenue : - Fee Earned 24,100 Expenses : - Wages Expense - Rent Expense - Utilities Expense - Van Expense - Miscellaneous Expense 5,070 4,750 3,100 1,500 950 15,370 Excess of Income over Expenses 8,730

5. The amount determined in (4) may not be correct because, the prepaid insurance and supplies are not accounted for the month as expenses. Depreciation also is not charged. Van Expenses which are payable in June may be paid (or) not in June month.