I have this assignment that I would like someone to figure out using the Kooster & Allen General Ledger Software.
On July 1, 2012, Kim Wheeler established an interior decorating business, Aztec Designs.
During the month, Kim completed the following transactions related to the business:
July 1. Kim transferred cash from a personal bank account to an account to be used
for the business, $21,000.
4. Paid rent for period of July 4 to end of month, $2,750.
10. Purchased a used truck for $18,000, paying $4,000 cash and giving a note pay-
able for the remainder.
13. Purchased equipment on account, $9,000.
14. Purchased supplies for cash, $1,500.
15. Paid annual premiums on property and casualty insurance, $3,600.
15. Received cash for job completed, $12,000.
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 July 13,
24. Recorded jobs completed on account and sent invoices to customers, $9,800.
26. Received an invoice for truck expenses, to be paid in August, $700.
27. Paid utilities expense, $1,000.
27. Paid miscellaneous expenses, $300.
29. Received cash from customers on account, $4,600.
30. Paid wages of employees, $2,800.
31. Withdrew cash for personal use, $2,500.
1. 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 explana-
tions may be omitted.
1 1 Cash 31 Kim Wheeler, Capital
1 2 Accounts Receivable 32 Kim Wheeler, Drawing
1 3 Supplies 41 Fees Earned
1 4 Prepaid Insurance 51 Wages Expense
1 6 Equipment 53 Rent Expense
1 8 Truck 54 Utilities Expense
21 Notes Payable 55 Truck Expense
22 Accounts Payable 59 Miscellaneous Expense
2. Post the journal to a ledger of four-column accounts, inserting appropriate posting
references as each item is posted. Extend the balances to the appropriate balance
columns after each transaction is posted.
3. Prepare an unadjusted trial balance for Aztec Designs as of July 31, 2012.
4. Determine the excess of revenues over expenses for July.
5. Can you think of any reason why the amount determined in (4) might not be the net
income for July?