Question

3 On November 1, 2049. Lexi Martin established an interior decorating business, Heritage Designs. During the month, Lexi completed the following transactions related to the business: Now 1. Lexi transferred cash from a personal bank account to an account to be used for the business in exchange for common stock. $50,000 1. Paid rent for period of November 1 to end of month $4,000. 6. Purchased office equipment on account: $15,000 8. Purchased a truck for $38,500 paying $5,000 cash and giving a note payable for the remainder 10. Purchased supplies for cash $1,750 12. Received cash for job completed, $11,500 15. Paid annual premiums on property and casualty insurance, $2,400 23. Recorded jobs completed on account and sent invoices to customers. $22.300, 24. Received an invoice for truck expenses to be paid in November $1,250. Enter the following transactions on Page 2 of the two column journal 29 Paid utilities expense, $4.500. 29. Paid miscellaneous expenses. $1.000. 30 Received cash from customers an account, $9.000. 30. Paid wages of employees. $6.800 30. Paid creditor a portion of the amount owed for equipment purchased on November 6, $3.000 30. Paid dividends. $2,500. Instructions cor • Journalize each transaction in a two-column journal beginning an Page 1. referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time) Explanations may be omitted 11 Cash 31 Common Stock 12 Accounts Receivable 33 Dividends 13 Supplies 41 Fees Eamed 14 Prepaid Insurance 51 Wages Expense 16 Equipment 53 Rent Expense 18 Truck 54 Utilities Expense 21 Notes Payable 55 Truck Expense 22 Accounts Payable 59 Miscellaneous Expense • Post the journal to a ledger of four column accounts, inserting appropriate posting references as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted • Prepare an unadjusted trial balance for Heritage Designs as of November 30, 2019 Answer Check Figure: Total of Credit column $111.450 • Determine the excess of revenues over expenses for November Can you think of any reason why the amount determined in (4) might not be the net income for November

I need help with this problem please.

Answer 1

JOURNAL
Date	Particulars	Debit	Credit
1-Nov	Cash	50000
	Common stock		50000
	(Being common stock issued)
1-Nov	Rent expense	4000
	Cash		4000
	(Being rent paid)
6-Nov	Equipment	5000
	Accounts payable		5000
	(Being equipment bought)
8-Nov	Truck	38500
	Cash		5000
	Note opayable		33500
	(Being truck bought)
10-Nov	Supplies	1750
	Cash		1750
	(Being supplies purchased)
12-Nov	Cash	11500
	Fees earned		11500
	(Being services granted)

Date	Particulars	Debit	Credit
15-Nov	Prepaid insuracnce	2400
	Cash		2400
	(Being insurance prmium paid)
23-Nov	Accounts receivable	22300
	Fees earned		22300
	(Being services rendered)
24-Nov	Truck expense	1250
	Cash		1250
	(Being truck expense paid)
29-Nov	Utilities expense	4500
	Cash		4500
	(Being utilities expense paid)
29-Nov	Miscelleneous expense	1000
	Cash		1000
	(Being expenses paid)
30-Nov	Cash	9000
	Accounts receivable		9000
	(Being cash collected)

Date	Particulars	Debit	Credit
30-Nov	wages expense	6800
	Cash		6800
	(Being wages paid)
30-Nov	Accounts oayable	3000
	Cash		300
	(Being payment made for truck)
30-Nov	Dividend	2500
	Cash		2500
	(Being dividend paid)

Heritage designs- Unadjusted Trial Balance
Particulars	Debit	Credit
Cash (50000-4000-5000-1750+11500-2400-1250-4500-1000+9000-6800-3000-2500)	38300
Common stock		50000
Rent expense	4000
Equipment	5000
Accounts payable(5000-3000)		2000
Truck	38500
Note payable		33500
Supplies	1750
Fees earned(11500+22300)		33800
Prepaid insurance	2400
Accounts receivable(22300-9000)	13300
Truck expense	1250
Utilities expense	4500
Miscelleneous expense	1000
wage expense	6800
Dividend	2500
Total	119300	119300