Recording process exercise

On April 1, 2020, Josi established an interior decorating business, Josi Designs. During the
month, Josi completed the following transactions related to the business:
Apr. 1. Josi transferred cash from a personal bank account to an account to be used
for the business, br.150,000.
2. Paid rent for period of April 2 to end of month, br.20,000.
4. Josi received an advance payment of br.27,000 from customer which should be completed
within three months
6. Purchased office equipment on account, br.10,000.
8. Purchased a used truck for br.210,000, paying br.20,000 cash and giving a note payable for the
remainder.
10. Purchased supplies for cash, br.12,000.
12. Received cash for job completed, br.81,500.
15. Paid annual premiums on property and casualty insurance, br.18,000.
23. Recorded jobs completed on account and sent invoices to customers, br.60,000.
24. Received an invoice for truck expenses, to be paid in April, br.10,000.
29. Paid utilities expense, br.1,100.
29. Paid miscellaneous expenses, br.500.
30. Received cash from customers on account, br.31,500.
30. Paid wages of employees, br.30,000.
30. Paid creditor a portion of the amount owed for equipment purchased on April 6, br.21,500.
30. Withdrew cash for personal use, br.17,500.

Instructions
1. Journalize each transaction in a two-column journal, 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.) Explanations may be omitted.
101 Cash 301 Josi, Capital
120 Accounts Receivable 302 Josi, Drawing
130 Supplies 401 Fees Earned
140 Prepaid Insurance 501 Wages Expense
160 Equipment 503 Rent Expense
180 Truck 504 Utilities Expense
210 Notes Payable 505 Depreciation Expense
220 Accounts Payable 509 Miscellaneous Expense
221 wage payable
225 Unearned revenue

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 Lodge Designs as of April 30, 2020.

On April 30, 2020, the following data were accumulated to assist the accountant in preparing the
adjusting entries for Josi Interior design:
a. Fees accrued but unbilled at April 30 are br.91,500.
b. The supplies account balance on April 30 is br.12,000. The supplies on hand at April 30 are
br.9,000.
c. Wages accrued but not paid at April 30 are br.1,200.
d. The unearned revenue account balance at August 31 is br.9,000, representing the receipt of an
advance payment on April 30 of three months’ rent from tenants.
e. Depreciation of office equipment is br.1,000.
Instructions
1. Journalize the adjusting entries required at August 31, 2010.
2. Briefly explain the difference between adjusting entries and entries that would be made to
correct errors.