Reference no: EM132622345

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, $27,600

1 Paid rent for period of November 1 to end of month, $3,200.

6 Purchased office equipment on account, $12,860.

8 Purchased a truck for $31,700 paying $6,200 cash and giving a note payable for the remainder.

10 Purchased supplies for cash, $1,480.

12 Received cash for job completed, $8,400.

15 Paid annual premiums on property and casualty insurance, $2,400.

23 Recorded jobs completed on account and sent invoices to customers, $12,060.

24 Received an invoice for truck expenses, to be paid in November, $1,230.

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

Nov. 29 Paid utilities expense, $3,590.

29 Paid miscellaneous expenses, $1,500.

30 Received cash from customers on account, $7,400.

30 Paid wages of employees, $4,200.

30 Paid creditor a portion of the amount owed for equipment purchased on November 6, $6,190.

30 Paid dividends, $2,200.

Problem 1: How do you Journalize each transaction in a two-column journal?

Problem 2: How do you make a journal and Post (in chronological order) the journal to a ledger of four-column accounts, inserting appropriate posting references in both the journal and the ledger as each item is posted?

Problem 3: Extend the balances to the appropriate balance columns after each transaction is posted.

Problem 4: How do you make an unadjusted trial balance for Heritage Designs as of November 30, 20Y9?

Problem 5: What are the excess of revenues over expenses for November?

Problem 6: Can you think of any reason why the amount determined in (4) might not be the net income for November?