Question

DHUWUHOW Calculator Print tem Journal Entries and Trial Balance On October 1, 2014, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business: Jay transferred cash from a personal bank account to an account to be used for the business in exchange for common Oct. 1. $25,700. 4. Paid rent for period of October 4 to end of month, $2,490. 10. Purchased a used truck for $21,000, paying $2,000 cash and giving a note payable for the remainder 13. Purchased equipment on account, $10,020. 14. Purchased supplies for cash, $1,720. 15. Paid annual premiums on property and casualty insurance, $3,860. 15. Received cash for job completed, $10,790. 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, $3,570. 24. Recorded jobs completed on account and sent invoices to customers, $12,280. 26. Received an invoice for truck expenses, to be paid in November, $1,130. 27. Paid utilities expense, $1,290. 27 Paid miscellaneous expenses, $460. 29. Received cash from customers on account, $5,140. 30. Paid wages of employees, $3,420. 31. Paid dividends, $2,850. Required: 1. Joumalize and insert the Posting References for each transaction in a two-column jumal beginning on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. If an amount box does not require an entry, leave it blank. Check My Work 2 more Check My Work uses remaining Previous All work saved. Ema t er Save and Sunt Assignment for Grading 732-553

Answer 1

Journal Entries:

Date	Account title and Explanation	Post ref.	Debit	Credit
Oct.1	Cash	11	$25,700
	Common stock	31		$25,700
	[To record issuance of common stock]
Oct.4	Rent expense		$2,490
	Cash	53		$2,490
	[To record payment of rent]	11
Oct.10	Truck	18	$21,000
	Cash	11		$2,000
	Notes payable	21		$19,000
	[To record purchase of truck]
Oct.13	Equipment	16	$10,020
	Accounts payable	22		$10,020
	[To record purchase of equipment on account]
Oct.14	Supplies	13	$1,720
	Cash	11		$1,720
	[To record purchase of supplies for cash]
Oct.15	Prepaid insurance	14	$3,860
	Cash	11		$3,860
	[To record payment of insurance]
Oct.15	Cash	11	$10,790
	Fees earned	41		$10,790
	[To record fees earned]
Oct.21	Accounts payable	22	$3,750
	Cash	11		$3,750
	[To record cash paid for accounts payable]
Oct.24	Accounts receivable	12	$12,280
	Fees earned	41		$12,280
	[To record job completed on account]
Oct.26	Truck expense	55	$1,130
	Accounts payable	22		$1,130
	[To record accrued truck expense]
Oct.27	Utilities expense	54	$1,290
	Cash	11		$1,290
	[To record payment of utilities]
Oct.29	Cash	11	$5,140
	Accounts receivable	12		$5,140
	[To record collections from customers]
Oct.30	Wages expense	51	$3,420
	Cash	11		$3,420
	[To record payment of wages]
Oct.31	Dividends	33	$2,850
	Cash	11		$2,850
	[To record payment of dividends]