On October 1, 2018, Jay Pryor established an interior decorating business, Pione

Question

On October 1, 2018, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related t Jay transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $18,000. 4. Paid rent for period of October 4 to end of month, $3,000. 10. Purchased a used truck for $23,750, paying $3,750 ca and giving a note payable for the remainder. 13. Purchased equipment on account, $10,500. 14. Purchased supplies for cash, $2,100. 15. Paid annual premiums on property and casualty insurance, $3,600 15. Received cash for job completed, $8,950. Oct. 1. 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 October 13, $2,000. 24. Recorded jobs completed on account and sent invoices to customers, $14,150. 26. Received an invoice for truck expenses, to be paid in November, $700. 27. Paid utilities expense, $2,240. 27 Paid miscellaneous expenses, $1,100 29. Received cash from customers on account, $7,600 30. Paid wages of employees, $4,800 31. Paid dividends, $3,500.

Explanation / Answer

Solution:

Journal Entries - Jay Pryor Date Particulars Debit Credit 1-Oct Cash Dr $18,000.00            To Common Stock $18,000.00 4-Oct Rent Expense Dr $3,000.00            To Cash $3,000.00 10-Oct Truck Dr $23,750.00            To Cash $3,750.00            To Notes Payable $20,000.00 13-Oct Equipment Dr $10,500.00            To Accounts payable $10,500.00 14-Oct Supplies Dr $2,100.00            To Cash $2,100.00 15-Oct Prepaid insurance Dr $3,600.00            To Cash $3,600.00 15-Oct Cash Dr $8,950.00            To Fees Earned $8,950.00 21-Oct Accounts payable Dr $2,000.00            To Cash $2,000.00 24-Oct Accounts receivables Dr $14,150.00            To Fees Earned $14,150.00 26-Oct Truck Expense Dr $700.00            To Accounts payable $700.00 27-Oct Utilities expense Dr $2,240.00            To Cash $2,240.00 29-Oct Cash Dr $7,600.00            To Accounts receivables $7,600.00 30-Oct Wage Expense Dr $4,800.00            To Cash $4,800.00 31-Oct Dividends Dr $3,500.00            To Cash $3,500.00

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