1.
Transactions
Concrete Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies;
Office Equipment; Accounts Payable; Jason Payne, Capital; Jason Payne, Drawing; Fees Earned; Rent
Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense.
Oct. 1. Paid rent for the month, $3,400.
3. Paid advertising expense, $2,140.
5. Paid cash for supplies, $920.
6. Purchased office equipment on account, $14,000.
10. Received cash from customers on account, $4,580.
15. Paid creditors on account, $1,340.
27. Paid cash for miscellaneous expenses, $580.
30. Paid telephone bill (utility expense) for the month, $210.
31. Fees earned and billed to customers for the month, $30,500.
31. Paid electricity bill (utility expense) for the month, $370.
31. Withdrew cash for personal use, $2,300.
Journalize the selected transactions for October 2019.
Rent
2019 Oct. 1 3400
Expense
Cash 3400
Advertising
2019 Oct. 3 2140
Expense
Cash 2140
2019 Oct. 5 Supplies 920
Cash 920
Office
2019 Oct. 6 14000
Equipment
Accounts
14000
Payable
2019 Oct.
Cash 4580
10
Accounts
4580
Receivable
2019 Oct. Accounts
1340
15 Payable
Cash 1340
2019 Oct. Miscellaneous
580
27 Expense
Cash 580
2019 Oct. Utilities
210
30 Expense
Cash 210
Oct. 31: Accounts
Fees 30500
earned Receivable
Fees Earned 30500
Oct. 31: Utilities
370
Paid bill Expense
Cash 370
Oct. 31: Jason Payne,
2300
Withdrawal Drawing
Cash 2300
2.
Journalize each transaction in a two-column journal, beginning on Page 1, referring to the following
chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account
numbers in the journal at this time.) Journal entry explanations may be omitted. For a compound
transaction, if an amount box does not require an entry, leave it blank.
11 Cash 31 Kris Storey, Capital
12 Accounts Receivable 32 Kris Storey, Drawing
13 Supplies 41 Fees Earned
14 Prepaid Insurance 51 Wages Expense
16 Equipment 53 Rent Expense
18 Truck 54 Utilities Expense
21 Notes Payable 55 Truck Expense
22 Accounts Payable 59 Miscellaneous Expense
General Journal Page 1
Date Description Post. Ref. Debit Credit
2019
June 1 Cash 11 18300
Kris Storey, Capital 31 18300
June 4 Rent Expense 53 1780
Cash 11 1780
June 6 Truck 18 15000
Cash 11 1000
Notes Payable 21 14000
June 8 Equipment 16 7140
Accounts Payable 22 7140
June 10 Supplies 13 1230
Cash 11 1230
June 12 Prepaid Insurance 14 2750
Cash 11 2750
June 15 Cash 11 7690
Fees Earned 41 7690
General Journal Page 2
Date Description Post. Ref. Debit Credit
2019
June 23 Accounts Payable 22 2540
Cash 11 2540
June 24 Accounts Receivable 12 8750
Fees Earned 41 8750
June 25 Truck Expense 55 810
Accounts Payable 22 810
June 26 Utilities Expense 54 920
Cash 11 920
June 27 Miscellaneous Expense 59 330
Cash 11 330
June 28 Cash 11 3660
Accounts Receivable 12 3660
June 29 Wages Expense 51 2430
Cash 11 2430
June 30 Kris Storey, Drawing 32 2030
Cash 11 2030
2. Post (in chronological order) the journal to a ledger of four-column accounts, inserting
appropriate posting references in the general journal as each item is posted. Extend the balances to
the appropriate balance columns after each transaction is posted. If an amount box does not require
an entry, leave it blank.
Account Cash ACCOUNT
Date Item Post. Ref. Debit Credit D
2019
June 1 1 18300 18300
June 4 1 1780 16520
June 6 1 1000 15520
June 10 1 1230 14290
June 12 1 2750 11540
June 15 1 7690 19230
June 23 2 2540 16690
June 26 2 920 15770
June 27 2 330 15440
June 28 2 3660 19100
June 29 2 2430 16670
June 30 2 2030 14640
Account Accounts Receivable ACCOUNT
Date Item Post. Ref. Debit Credit D
2019
June 24 2 8750 8750
June 28 2 3660 5090
Account Supplies ACCOUNT
Date Item Post. Ref. Debit Credit D
2019
June 10 1 1230 1230
Account Prepaid Insurance ACCOUNT
Date Item Post. Ref. Debit Credit D
2019
June 12 1 2750 2750
Account Equipment ACCOUNT
Date Item Post. Ref. Debit Credit D
2019
June 8 1 7140 7140
Account Truck ACCOUNT
Date Item Post. Ref. Debit Credit D
2019
June 6 1 15000 15000
Account Notes Payable ACCOUNT N
Date Item Post. Ref. Debit Credit Deb
2019
June 6 1 14000
Account Accounts Payable ACCOUNT
Date Item Post. Ref. Debit Credit D
2019
June 8 1 7140
June 23 2 2540
June 25 2 810
Account Kris Storey, Capital ACCOUNT N
Date Item Post. Ref. Debit Credit Deb
2019
June 1 1 18300
Account Kris Storey, Drawing ACCOUNT
Date Item Post. Ref. Debit Credit D
2019
June 30 2 2030 2030
Account Fees Earned ACCOUNT NO
Date Item Post. Ref. Debit Credit Deb
2019
June 15 1 7690
June 24 2 8750
Account Wages Expense ACCOUNT
Date Item Post. Ref. Debit Credit D
2019
June 29 2 2430 2430
Account Rent Expense ACCOUNT
Date Item Post. Ref. Debit Credit D
2019
June 4 1 1780 1780
Account Utilities Expense ACCOUNT
Date Item Post. Ref. Debit Credit D
2019
June 26 2 920 920
Account Truck Expense ACCOUNT
Date Item Post. Ref. Debit Credit D
2019
June 25 2 810 810
Account Miscellaneous Expense ACCOUNT
Date Item Post. Ref. Debit Credit D
2019
June 27 2 330 330
2
3. Prepare an unadjusted trial balance for Eco-Centric Designs as of June 30, 2019. For those boxes
in which no entry is required, leave the box blank. The first two account titles are filled in as an
example.
Eco-Centric Designs
Unadjusted Trial Balance
June 30, 2019
Debit Balances Credit Balances
Cash 14640
Accounts Receivable 5090
Supplies 1230
Prepaid Insurance 2750
Equipment 7140
Truck 15000
Notes Payable 14000
Accounts Payable 5410
Kris Storey, Capital 18300
Kris Storey, Drawing 2030
Fees Earned 16440
Wages Expense 2430
Rent Expense 1780
Utilities Expense 920
Truck Expense 810
Miscellaneous Expense 330
Totals 54150 54150
3
4. Determine the excess of revenues over expenses for June.
$ 10170
5. Can you think of any reason why the amount determined in (4) might not be the net income for
June?
1. Fees earned includes some fees earned in the month of June that have not been received.
2. Utilities expense includes expenses incurred for the month of June than have not yet been
paid
3. Some supplies may have been used during June but no supplies expense has been recorded.
4. Additions to capital has been wrongly recorded as drawings.
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