On November 1, 2016, Patty Cosgrove established an interior decorating business,
ID: 2415586 • Letter: O
Question
On November 1, 2016, Patty Cosgrove established an interior decorating business, Classic Designs. During the month, Patty completed the following transactions related to the business:
Enter the following transactions on Page 2 of the two-column journal:
Nov. 1 Patty transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $26,000. 1 Paid rent for period of November 1 to end of month, $3,800. 6 Purchased office equipment on account, $12,710. 8 Purchased a truck for $30,400 paying $6,100 cash and giving a note payable for the remainder. 10 Purchased supplies for cash, $1,920. 12 Received cash for job completed, $8,300. 15 Paid annual premiums on property and casualty insurance, $2,200. 23 Recorded jobs completed on account and sent invoices to customers, $12,220. 24 Received an invoice for truck expenses, to be paid in November, $1,010.Explanation / Answer
Nov 1 Cash 11 $27,750
Patty Cosgrove, Capital 31 $27,750
Nov 1 Rent Expense 53 $4,000
Cash 11 $4,000
Nov 6 Equipment 16 $12,880
Accounts Payable 22 $12,880
Nov 8 Truck 18 $32,500
Cash 11 $6,500
Notes Payable 21 $26,000
Nov 10 Supplies 13 $1,860
Cash 11 $1,860
Nov 12 Cash 11 $7,500
Fees Earned 41 $7,500
Nov 15 Prepaid Insurance 14 $2,400
Cash 11 $2,400
Nov 23 Accounts Receivable 12 $12,440
Fees Earned 41 $12,440
Nov 24 Truck Expense 55 $1,100
Accounts Payable 22 $1,100
Journal
Page 2
Date Description Post Ref Debit Credit
Nov 29 Utilities Expense 54 $3,660
Cash 11 $3,660
Nov 29 Miscellaneous Expense 59 $1,700
Cash 11 $1,700
Nov 30 Cash 11 $8,000
Accounts Receivable12 $8,000
Nov 30 Wages Expense 51 $4,750
Cash 11 $4,750
Nov 30 Accounts Payable 22 $6,220
Equipment 16 $6,220
Nov 30 Cash 11 $2,000
Patty Cosgrove, Drawing 32 $2,000
Cash 11
Balance
Date Item Post Ref Dr Cr Dr Cr
1-Nov 1 $27,750 $27,750
1-Nov 1 $4,000 $23,750
8-Nov 1 $6,500 $17,250
10-Nov 1 $1,860 $15,390
12-Nov 1 $7,500 $22,890
15-Nov 1 $2,400 $20,490
29-Nov 2 $3,660 $16,830
29-Nov 2 $1,700 $15,130
30-Nov 2 $8,000 $23,130
30-Nov 2 $4,750 $18,380
30-Nov 2 $2,000 $20,380
Accounts Rec 12
Balance
Date Item Post Ref Dr Cr Dr Cr
23-Nov 1 $12,440 $12,440
30-Nov 2 $8,000 $4,440
Supplies 13
Balance
Date Item Post Ref Dr Cr Dr Cr
10-Nov 1 $1,860 $1,860
Prepaid Insurance 14
Balance
Date Item Post Ref Dr Cr Dr Cr
15-Nov 1 $2,400 $2,400
Equipment 16
Balance
Date Item Post Ref Dr Cr Dr Cr
6-Nov 1 $12,880 $12,880
30-Nov 2 $6,220 $6,660
Truck 18
Balance
Date Item Post Ref Dr Cr Dr Cr
8-Nov 1 $32,500 $32,500
Notes Payable 21
Balance
Date Item Post Ref Dr Cr Dr Cr
8-Nov 1 $26,000 $26,000
Accounts Payable 22
Balance
Date Item Post Ref Dr Cr Dr Cr
6-Nov 1 $12,880 $12,880
21-Nov 1 $1,100 $13,980
30-Nov 2 $6,220 $7,760
Patty Cosgrove, Capital 31
Balance
Date Item Post Ref Dr Cr Dr Cr
1-Nov 1 $27,750 $27,750
Patty Cosgrove, Drawing 32
Balance
Date Item Post Ref Dr Cr Dr Cr
30-Nov 2 $2,000 $2,000
Fees Earned 41
Balance
Date Item Post Ref Dr Cr Dr Cr
12-Nov 1 $7,500 $7,500
23-Nov 1 $12,440 $19,940
Wages Expense 51
Balance
Date Item Post Ref Dr Cr Dr Cr
30-Nov 2 $4,750 $4,750
Rent Expense 53
Balance
Date Item Post Ref Dr Cr Dr Cr
1-Nov 1 $4,000 $4,000
Utilities Expense 54
Balance
Date Item Post Ref Dr Cr Dr Cr
29-Nov 2 $3,660 $3,660
Truck Expense 55
Balance
Date Item Post Ref Dr Cr Dr Cr
24-Nov 1 $1,100 $1,100
Misc Expense 59
Balance
Date Item Post Ref Dr Cr Dr Cr
29-Nov 2 $1,700 $1,700
Unadjusted Trial Balance
Cash $20,380
Accounts Rec $4,440
Supplies $1,860
Prepaid $2,400
Equipment $6,660
Truck $32,500
Notes Payable $26,000
Accounts Payable $7,760
Patty Cosgrove, Capital $27,750
Patty Cosgrove, Drawing $2,000
Fees Earned $19,940
Wage Expense $4,750
Rent Expense $4,000
Utilities Expense $3,660
Truck Expense $1,100
Misc Expense $1,700
Balance $83,450 $83,450
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