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

Solution:

Debit Credit Date June 1. Accounts Title Cash Kris, Capital $ 35,000 $ 35,000 June 1. $ 4,750 Prepaid Rent Cash 4,750 June 6. $ 14,100 Equipment Accounts payable $ 14,100 June 8. Van $ 28,500 Cash $ $ 4,500 24,000 Note Payable 2,380 June 10. Supplies Cash $ 2,380 June 12. $ 12,200 Cash Service revenue $ 12,200 June 15. Prepaid insurance Cash $ 3,600 $ 3,600 $ 11,900 June 23. Accounts receivable Service revenue $ 11,900 $ 1,500 June 24. Van expense Accounts payable $ 1,500

Credit Undjusted Trial Balance June 30, 2019 Accounts Debit Cash 31,970 Accounts receivable 11,900 Prepaid rent 4,750 Supplies 2,380 Prepaid Insurance 3,600 Van expense 1,500 Service reveune Equipment 14,100 Van 28,500 Accounts payable Notes payable Kris, Capital Total 98,700 24,100 15,600 24,000 35,000 98,700