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 June 1 Kris transferred cash from a personal bank account to an account to be used for the business, $32,600. 4 Paid rent for period of June 4 to end of month, $3,160. 6. Purchased a used truck for $27,000, paying $3,000 cash and giving a note payable for the remainder B. Purchased equipment on account, $12.710 10. Purchased supplies for cash, $2,100. 12. Paid annual premiums on property and casualty Insurance, 54,890. 15. Received cash for job completed, $13.600 Enter the following transactions on Page 2 of the two column joumat: 23. Paid creditor a portion of the amount owed for equipment purchased on June 13, 14,530 Recorded jobs completed on account and sent invoices to customers, $15,580. 25. Received an invoice for truck expenses, to be paid in July $1,410, 25. Paid utilities expense, 51,670 27 Paid miscellaneous expenses, 5590 Received cash from customers on account 56,520 29 Paid wages of employees, 54,140 Withdrew cash for personal use. 53,620. Required:

Answer 1

Journal Entries:

Date	Account title and explanation	Debit	Credit
June 1	Cash	$32,600
	Kris, Capital		$32,600
	[To record investment into the business]
June 4	Rent expense	$3,160
	Cash		$3,160
	[To record rent expense]
June 6	Truck	$27,000
	Cash		$3,000
	Notes payable		$24,000
	[To record purchase of truck]
June 8	Equipment	$12,710
	Accounts payable		$12,710
	[To record purchase of equipment on account]
June 10	Supplies	$2,180
	Cash		$2,180
	[To record purchase of supplies for cash]
June 12	Prepaid insurance	$4,890
	Cash		$4,890
	[To record payment of interest]
June 15	Cash	$13,690
	Service revenue		$13,690
	[To record service revenue]
June 23	Accounts payable	$4,530
	Cash		$4,530
	[To record cash paid for accounts payable]
June 24	Accounts receivable	$15,580
	Service revenue		$15,580
	[To record services performed on account]
June 25	Truck expense	$1,430
	Accounts payable		$1,430
	[To record accrued truck expense]
June 26	Utilities expense	$1,630
	Cash		$1,630
	[To record payment of Utilities]
June 27	Miscellaneous expense	$590
	Cash		$590
	[To record payment of miscellaneous expense]
June 28	Cash	$6,520
	Accounts receivable		$6,520
	[To record collections from customers]
June 29	Wages expense	$4,340
	Cash		$4,340
	[To record payment of wages]
June 30	Kris, drawings	$3,620
	Cash		$3,620
	[To record cash withdrawals]