On November 1, 20Y9, Lexi Martin established an interior decorating business, Heritage Designs. During the month, Lexi completed

Question

3 months ago

11

On November 1, 20Y9, Lexi Martin established an interior decorating business, Heritage Designs. During the month, Lexi completed

the following transactions related to the business:
Nov.

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:

Nov.
29 Paid utilities expense, $4,500.
29 Paid miscellaneous expenses, $1,000.
30 Received cash from customers on 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.

Required:

1. Journalize each transaction in a two-column journal beginning on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited.
2. Refer to the Chart of Accounts for exact wording of account titles.

Business

1 answer:

soldi70 [3.6K] · Answer 1 · 2026-02-22T21:40:14+03:00

Answer:

Explanation:

(1) Recording the Transactions:-

Heritage Designs

General Journal

For November, 20Y9

Date Accounts Debit Credit

Nov. 1 Cash $50,000

Common Stock $50,000

Nov. 1 Rent Expense $4,000

Cash $4,000

Nov. 6 Office Equipment $15,000

Accounts Payable $15,000

Nov. 8 Truck $38,500

Cash $5,000

Notes Payable $33,500

Nov. 10 Supplies $1,750

Cash $1,750

Nov. 12 Cash $11,500

Fees Earned $11,500

Nov. 15 Prepaid Insurance $2,400

Cash $2,400

Nov. 23 Accounts Receivable $22,300

Fees Earned $22,300

Nov. 24 Truck Expense $1,250

Cash $1,250

Nov. 29 Utilities Expense $4,500

Cash $4,500

Nov. 29 Miscellaneous Expense $1,000

Cash $1,000

Nov. 30 Cash $9,000

Accounts Receivable $9,000

Nov. 30 Wages Expense $6,800

Cash $6,800

Nov. 30 Accounts Payable $3,000

Cash $3,000

Nov. 30 Dividends $2,500

Cash $2,500

(2) Posting Transactions to the General Ledger:-

Cash

Date Items Debit Credit Balance

Nov. 1 Common Stock $50,000 $50,000

Nov. 1 Rent Expense $4,000 $46,000

Nov. 8 Truck $5,000 $41,000

Nov. 10 Supplies $1,750 $39,250

Nov. 12 Fees Earned $11,500 $50,750

Nov. 15 Prepaid Insurance $2,400 $48,350

Nov. 24 Truck Expense $1,250 $47,100

Nov. 29 Utilities Expense $4,500 $42,600

Nov. 29 Miscellaneous Expense $1,000 $41,600

Nov. 30 Accounts Receivable $9,000 $50,600

Nov. 30 Wages Expense $6,800 $43,800

Nov. 30 Accounts Payable $3,000 $40,800

Nov. 30 Dividends $2,500 $38,300

Accounts Receivable

Date Items Debit Credit Balance

Nov. 23 Fees Earned $22,300 $22,300

Nov. 30 Cash $9,000 $13,300

Supplies

Date Items Debit Credit Balance

Nov. 10 Cash $1,750 $1,750

Prepaid Insurance

Date Items Debit Credit Balance

Nov. 15 Cash $2,400 $2,400

Equipment

Date Items Debit Credit Balance

Nov. 6 Accounts Payable $15,000 $15,000

Truck

Date Items Debit Credit Balance

Nov. 8 Cash $5,000 $5,000

Nov. 8 Notes Payable $33,500 $38,500

Notes Payable

Date Items Debit Credit Balance

Nov. 8 Truck $33,500 $33,500

Accounts Payable

Date Items Debit Credit Balance

Nov. 6 Equipment $15,000 $15,000

Nov. 30 Cash $3,000 $12,000

Common Stock

Date Items Debit Credit Balance

Nov. 1 Cash $50,000 $50,000

Dividends