Question

On November 1, 2019, Debbie Debit established an interior decorating business, Debit Designs. During the month, Debit completed the following transactions related to the business: November 1: Debit transferred cash from a personal bank account to a business account $27,750 1: Paid rent for the month $4,000 6: Purchased office equipment on account, $12,880 8: Purchased a truck for $32,500, paying $6.500 cash and giving a note payable for the remainder 10: Purchased supplies for cash $1,860 12: Received cash for job completed $7,500 15: Paid annual premiums on property and casualty insurance $2,400 23: Recorded jobs completed on account and sent invoice to customers $12,440 24: Received an invoice (bill) for truck expenses for the month of November to be paid in the following month $1,100 29: Paid utilities expense $3,660 29: Paid miscellaneous expense $1,700 30: Received cash from customers on account 30: Paid wages of employees $4,750 30: Paid creditor a portion of the amount owed for equipment purchased on November 6, $6,220 30: Withdrew cash for personal use $2,000 Required: Prepare the journal entries for each transaction. I am not requiring you, at this point to post the transactions to the T accounts (General Ledger) or prepare an unadjusted Trial Balance.

Answer 1

JOURNAL

FOR DEBIT DESIGNS

FOR MONTH OF NOV/2019

DATE	PARTICULARS	DEBIT($)	CREDIT($)
2019
NOV	01	Cash A/C              Debit Designs Capital A/C (Being cash transferred from personal bank A/C to business bank A/C)	27750	27750
	01	Rent A/C              Bank A/C (Being rent expenses paid.*)	4000	4000
	06	Office Equipment A/C                                Account payable A/C (Being office equipment purchased on Account.)	12880	12880
	08	Truck A/C               Cash A/C                Notes Payable A/C (Being Truck purchased for which $6500 paid in cash and notes payable issued for remaining amount.)	32500	6500 26000
	10	Supplies A/C                  Cash A/C (Being supplies purchased for cash.)	1860	1860
	12	Cash A/C             Fees A/C (Being cash received for job completed.)	7500	7500
	15	Prepaid Insurance A/C                                 Bank A/C (Bing premium paid property and casualty insurance for whole year.*)	2400	2400
	23	Accounts Receivable A/C                                      Fees A/C (Being jobs completed on account and invoice sent to customers.)	12440	12440
	24	Truck expenses A/C                          Account Payable A/C (Being bill received for truck expenses and to be paid)	1100	1100
	29	Utilities Expenses A/C                                     Bank A/C (Being utilities expenses paid *)	3660	3660
	29	Miscellaneous Expenses A/C                                              Bank A/C (Being miscellaneous expenses paid)	1700	1700
	30	Cash A/C             Accounts receivable A/C (Being cash received from customers on account dated 23/NOV.)	12440	12440
	30	Wages A/C              Bank A/C (Being wages to employees paid*)	4750	4750
	30	Account Payable A/C                             Bank A/C (Being portion of amount paid against account payable raised for purchasing of office equipment on 06/NOV*)	6220	6220
	30	Debit Designs Drawings A/C                                           Cash A/C (Being ash withdrawn for personal use.)	2000	2000

* WHERE NOTHING IS MENTIONED IT IS ASSUMED THAT TRANSCTION IS DONE THROUGH BANK