On June 1, 2019, Kris Storey established an interior decorating business, Eco-Ce

Question

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:

Enter the following transactions on Page 2 of the two-column journal:

June 1 Kris transferred cash from a personal bank account to an account to be used for the business, $27,250. 1 Paid rent for period of June 1 to end of month, $3,100. 6 Purchased office equipment on account, $12,700. 8 Purchased a van for $31,450 paying $6,300 cash and giving a note payable for the remainder. 10 Purchased supplies for cash, $1,660. 12 Received cash for job completed, $9,000. 15 Paid annual premiums on property and casualty insurance, $2,500. 23 Recorded jobs completed on account and sent invoices to customers, $12,440. 24 Received an invoice for van expenses, to be paid in June, $1,390.

Explanation / Answer

Answer 5. Because some of the supplies have been used during the month of June but no supplies expense has been recorded.

Answer 1. Journal Page 1 Date Description Post Ref. Debit Credit 2019 June 1 Cash A/c 11          27,250 Kris Storey Capital A/c 31          27,250 1 Rent A/c 53            3,100 Cash A/c 11            3,100 6 Equipment A/c 16          12,700 Accounts Payable A/c 22          12,700 8 Van A/c 18          31,450 Cash A/c 11            6,300 Notes Payable A/c 21          25,150 10 Supplies A/c 13            1,660 Cash A/c 11            1,660 12 Cash A/c 11            9,000 Fees Earned A/c 41            9,000 15 Prepaid Insurance A/c 14            2,500 Cash A/c 11            2,500 23 Accounts Receivable A/c 12          12,440 Fees Earned A/c 41          12,440 24 Van Expense A/c 55            1,390 Accounts Payable A/c 22            1,390 Journal Page 2 Date Description Post Ref. Debit Credit 2019 June 29 Utilities Expense A/c 54            3,660 Cash A/c 11            3,660 29 Miscellaneous Expense 59            1,580 Cash A/c 11            1,580 30 Cash A/c 11            8,200 Accounts Receivable 12            8,200 30 Wages Expense A/c 51            4,600 Cash 11            4,600 30 Accounts payable A/c 22            6,160 Cash A/c 11            6,160 30 Kris Storey Drawing A/c 32            2,100 Cash A/c 11            2,100 Answer 2. GENERAL LEDGER Account: Cash Account No. 11 Date Item Post Ref. Debit Credit Balance Debit Credit 2019 June 1 1          27,250          27,250 1 1               3,100          24,150 8 1               6,300          17,850 10 1               1,660          16,190 12 1            9,000          25,190 15 1               2,500          22,690 29 2               3,660          19,030 29 2               1,580          17,450 30 2            8,200          25,650 30 2               4,600          21,050 30 2               6,160          14,890 30 2               2,100          12,790 Account: Accounts Receivable Account No. 12 Date Item Post Ref. Debit Credit Balance Debit Credit 2019 June 23 1          12,440          12,440 30 2               8,200            4,240 Account: Supplies Account No. 13 Date Item Post Ref. Debit Credit Balance Debit Credit 2019 June 10 1 1660 1660 Account: Prepaid Insurance Account No. 12 Date Item Post Ref. Debit Credit Balance Debit Credit 2019 June 15 1 2500 2500 Account: Equipment Account No. 12 Date Item Post Ref. Debit Credit Balance Debit Credit 2019 June 6 1 12700 12700 Account: Van Account No. 12 Date Item Post Ref. Debit Credit Balance Debit Credit 2019 June 8 1 31450 31450 Account: Notes Payable Account No. 12 Date Item Post Ref. Debit Credit Balance Debit Credit 2019 June 8 1 25150 25150 Account: Accounts Payable Account No. 12 Date Item Post Ref. Debit Credit Balance Debit Credit 2019 June 6 1 12700 12700 24 1 1390 14090 30 2 6160 7930 Account: Kris Storey Capital Account No. 12 Date Item Post Ref. Debit Credit Balance Debit Credit 2019 June 1 1 27250 27250 Account: Kris Storey Drawing Account No. 12 Date Item Post Ref. Debit Credit Balance Debit Credit 2019 June 30 2 2100 2100 Account: Fees Earned Account No. 12 Date Item Post Ref. Debit Credit Balance Debit Credit 2019 June 12 1 9000 9000 23 1 12440 21440 Account: Wages Expense Account No. 12 Date Item Post Ref. Debit Credit Balance Debit Credit 2019 June 30 2 4600 4600 Account: Rent Expense Account No. 12 Date Item Post Ref. Debit Credit Balance Debit Credit 2019 June 1 1 3100 3100 Account: Untility Expense Account No. 12 Date Item Post Ref. Debit Credit Balance Debit Credit 2019 June 29 2 3660 3660 Account: Van Expense Account No. 12 Date Item Post Ref. Debit Credit Balance Debit Credit 2019 June 24 1 1390 1390 Account: Miscellaneous Expense Account No. 12 Date Item Post Ref. Debit Credit Balance Debit Credit 2019 June 29 2 1580 1580

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