Recording the transactions of interior decorating business


Response to the following problem:

On November 2, 2006, Nicole Oliver established an interior decorating business, Devon Designs. During the remainder of the month, Nicole completed the following transactions related to the business:

Nov. 2 Nicole transferred cash from a personal bank account to an account to be used for the business in exchange for capital stock, $15,000.

5 Paid rent for the period of November 5 to end of month, $1,750.

6 Purchased office equipment on account, $8,500.

8 Purchased a used truck for $18,000, paying $10,000 cash and giving a note payable for the remainder.

10 Purchased supplies for cash, $1,115.

12 Received cash for job completed, $7,500.

15 Paid annual premiums on property and casualty insurance, $2,400.

23 Recorded jobs completed on account and sent invoices to customers, $3,950.

24 Received an invoice for truck expenses, to be paid in December, $600.

29 Paid utilities expense, $750.

29 Paid miscellaneous expenses, $310.

30 Received cash from customers on account, $2,200.

30 Paid wages of employees, $2,700.

30 Paid creditor a portion of the amount owed for equipment purchased on November 6, $2,125.

30 Paid dividends, $1,400.

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Financial Accounting: Recording the transactions of interior decorating business
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