On July 1, 2012, Kim Wheeler established an interior decorating business, Aztec Designs. During the month, Kim completed the following transactions related to the business: July 1. Kim transferred ca

On July 1, 2012, Kim Wheeler established an interior decorating business, Aztec Designs. During the month, Kim completed the following transactions related to the business:

July 1. Kim transferred cash from a personal bank account to an account to be used for the business in exchange for capital stock, $21,000.

4. Paid rent for period of July 4 to end of month, $2,750.

10. Purchased a used truck for $18,000, paying $4,000 cash and giving a note payable for the remainder.

13. Purchased equipment on account, $9,000.

14. Purchased supplies for cash, 1,500.

15. Paid annual premiums on property and casualty insurance, $3,600.

15. Received cash for job completed, $12,000.

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 July 13, $2,000.

24, Recorded jobs completed on account and sent invoices to customers, $9,800.

26. Received an invoice for truck expenses, to be paid in August, $700.

27. Paid utilities expense, $1,000.

27. Paid miscellaneous expenses, $300.

29. Received cash from customers on account, $4,600.

30. Paid wages of employees, $2,800.

31. withdrew cash for personal use, $2,500.

Instructions

1. Journalize each transaction in a two-column journal beginning on 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). Journal entry explanations may be omitted.

11 Cash 31 Kim Wheeler, Capital

12 Accounts Receivable 33 Kim Wheeler, Drawing

13 Supplies 41 Fees Earned

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

2. 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.

3. Prepare an unadjusted trial balance for Aztec Designs as of July 313, 2012.

4. Determine the excess of revenues over expenses for July.

ATTACHMENT PREVIEW

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Problem 2-3B
Name:
Section:
Score:
64%
Key Code:
[Kay code here]
Answers are entered in the cel s with gray backgrounds.
Cel s with non-gray backgrounds are protected and cannot be edited.
Enter the appropriate amounts/formulas in the answer cel s, or select from the drop-down list.
In journal entries, dates wil not be graded. In the general ledger accounts, only the final balance of the acco
graded. For cor ect grading in the trial balance, enter a zero where you would otherwise leave an amount ce
An asterisk (*) wil appear to the right of incor ect entries in outlined answer cel s.
1.
JOURNAL
Post
Date
Description
Ref.
Debit
Credit
2012
July
1 Cash
21,000
Kim Wheeler, Capital
21,000
4 Rent Expense
2,750
Cash
2,750
10 Truck
18,000
Cash
4,000
Notes Payable
14,000
13 Equipment
9,000
Accounts Payable
9,000
14 Supplies
1,500
Cash
1,500
15 Prepaid Insurance
3,600
Cash
3,600
15 Cash
12,000
Fees Earned
12,000
JOURNAL
Post
Date
Description
Ref.
Debit
Credit
2012
July
21 Accounts Payable
2,000
Cash
2,000
24 Accounts Receivable
9,800
Fees Earned
9,800
26 Truck Expense
700
Accounts Payable
700
27 Utilities Expense
1,000
Cash
1,000
27 Miscel aneous Expense
300
Cash
300
29 Cash
4,600
Accounts Receivable
4,600
30 Wages Expense
2,800
Cash
2,800
31 Kim Wheeler, Drawing
2,500
Cash
2,500
2.
GENERAL LEDGER
Cash
11
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
1

21,000

21,000

2,750
2,750




Accounts Receivable
12
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
Supplies
13
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
Prepaid Insurance
14
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
Equipment
16
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
Truck
18
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
Notes Payable
21
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
Accounts Payable
22
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
Kim Wheeler, Capital
31
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
Kim Wheeler, Drawing
32
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
Fees Earned
41
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
Wages Expense
51
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
Rent Expense
53
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
Utilities Expense
54
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
Truck Expense
55
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
Miscel aneous Expense
59
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
3.
AZTEC DESIGNS
Unadjusted Trial Balance
July 31, 2012
Cash

Accounts Receivable

Supplies
1,500

Prepaid Insurance
3,600

Equipment
9,000

Truck
18,000

Notes Payable

14,000
Accounts Payable

12,000
*
Kim Wheeler, Capital

21,000
Kim Wheeler, Drawing
2,500

Fees Earned

Wages Expense
2,800

Rent Expense
2,750

Utilities Expense
1,000

Truck Expense
700

Miscel aneous Expense
300

64,500
64,500
Instructions
Page
1
Page
2

Unlock Solution Unlocking…

Problem 2-3B
Name:
Solution
Section:
Score:
ON
Key Code:
Answers are entered in the cel s with gray backgrounds.
Cel s with non-gray backgrounds are protected and cannot be edited.
Enter the appropriate amounts/formulas in the answer cel s, or select from the drop-down list.
In the general ledger accounts, only the final balance of the account wil be graded.
For cor ect grading in the trial balance, enter a “0” where you would otherwise leave an amount cel blank.
An asterisk (*) wil appear to the right of incor ect entries in outlined answer cel s.
1.
JOURNAL
Post
Date
Description
Ref.
Debit
Credit
2012
July
1 Cash
11
21,000
Kim Wheeler, Capital
31
21,000
4 Rent Expense
53
2,750
Cash
11
2,750
10 Truck
18
18,000
Cash
11
4,000
Notes Payable
21
14,000
13 Equipment
16
9,000
Accounts Payable
22
9,000
14 Supplies
13
1,500
Cash
11
1,500
15 Prepaid Insurance
14
3,600
Cash
11
3,600
15 Cash
11
12,000
Fees Earned
41
12,000
JOURNAL
Post
Date
Description
Ref.
Debit
Credit
2012
July
21 Accounts Payable
22
2,000
Cash
11
2,000
24 Accounts Receivable
12
9,800
Fees Earned
41
9,800
26 Truck Expense
55
700
Accounts Payable
22
700
27 Utilities Expense
54
1,000
Cash
11
1,000
27 Miscel aneous Expense
59
300
Cash
11
300
29 Cash
11
4,600
Accounts Receivable
12
4,600
30 Wages Expense
51
2,800
Cash
11
2,800
31 Kim Wheeler, Drawing
32
2,500
Cash
11
2,500
GENERAL LEDGER
2.
Cash
11
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
1
1
21,000
21,000
4
1
2,750
18,250
10
1
4,000
14,250
14
1
1,500
12,750
15
1
3,600
9,150
15
1
12,000
21,150
21
2
2,000
19,150
27
2
1,000
18,150
27
2
300
17,850
29
2
4,600
22,450
30
2
2,800
19,650
31
2
2,500
17,150
Accounts Receivable
12
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
24
2
9,800
9,800
29
2
4,600
5,200
Supplies
13
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
14
1
1,500
1,500
Prepaid Insurance
14
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
15
1
3,600
3,600
Equipment
16
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
13
1
9,000
9,000
Truck
18
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
10
1
18,000
18,000
Notes Payable
21
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
10
1
14,000
14,000
Accounts Payable
22
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
13
1
9,000
9,000
21
1
2,000
7,000
26
2
700
7,700
Kim Wheeler, Capital
31
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
1
1
21,000
21,000
Kim Wheeler, Drawing
32
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
31
2
2,500
2,500
Fees Earned
41
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
15
1
12,000
12,000
24
2
9,800
21,800
Wages Expense
51
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
30
2
2,800
2,800
Rent Expense
53
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
4
1
2,750
2,750
Utilities Expense
54
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
27
2
1,000
1,000
Truck Expense
55
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
26
2
700
700
Miscel aneous Expense
59
Post
Balance
Date
Item
Ref.
Dr.
Cr.
Dr.
Cr.
2012
July
27
2
300
300
3.
AZTEC DESIGNS
Unadjusted Trial Balance
July 31, 2012
Cash
17,150

Accounts Receivable
5,200

Supplies
1,500

Prepaid Insurance
3,600

Equipment
9,000

Truck
18,000

Notes Payable

14,000
Accounts Payable

7,700
Kim Wheeler, Capital

21,000
Kim Wheeler, Drawing
2,500

Fees Earned

21,800
Wages Expense
2,800

Rent Expense
2,750

Utilities Expense
1,000

Truck Expense
700

Miscel aneous Expense
300

64,500
64,500
Instructions
Page
1
Page
2

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