4. Prepare an unadjusted trial balance of the ledger as of April 30, 20Y3. Elite RealtyUNADJUSTED TRIAL BALANCEApril 30, 20Y3 ACCOUNT TITLEDEBITCREDIT1Cash 2Accounts Receivable 3Prepaid Insurance 4Office Supplies 5Land 6Accounts Payable 7Unearned Rent 8Notes Payable 9Common Stock 10Retained Earnings 11Dividends 12Fees Earned 13Salary and Commission Expense 14Rent Expense 15Advertising Expense 16Automobile Expense 17Miscellaneous Expense 18Totals Enter the following transactions on Page 19 of the two-column journal:Apr.27Discovered an error in computing a commission; received cash from the salesperson for theoverpayment, $2,500.28Paid automobile expense (including rental charges for an automobile), $1,600.29Paid miscellaneous expenses, $1,700.30Recorded revenue earned and billed to clients during the month, $56,000.30Paid salaries and commissions for the month, $13,500.30Paid dividends, $4,000.30Rented land purchased on April 15 to local merchants association for use as a parking lot in May andJune, during a street rebuilding program; received advance payment of $11,400.Required:1. Record the April 1, 20Y3, balance of each account in the appropriate balance column of a four-column account, type Balance in the itemsection, and select a check mark in the Posting Reference column.2. Journalize the transactions for April in a two-column journal beginning on Page 18. Refer to the Chart of Accounts for exact wording of accounttitles. Insert the appropriate posting references in both the journal and the ledger as each item is posted.3. Post to the ledger, extending the account balance to the appropriate balance column after each posting. Post in chronological order. Fortransactions occurring on the same day, post in the order presented in the instructions. Insert the appropriate posting references in both thejournal and the ledger as each item is posted.4. Prepare an unadjusted trial balance of the ledger as of April 30, 20Y3.5. Assume that the April 30 transaction for salaries and commissions should have been $15,300. (a) Why did the unadjusted trial balance in (4)balance? (b) Journalize the correcting entry on April 30. Use page 20. (Note: You will not be required to post this entry to the ledger at thistime.) (c) Is this error a transposition or slide? InstructionsElite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 20Y3, follows:Elite RealtyUNADJUSTED TRIAL BALANCEMarch 31, 20Y3ACCOUNT TITLEDEBITCREDIT1 Cash26,700.002 Accounts Receivable59,100.003 Prepaid Insurance3,500.004 Office Supplies1,500.005 Accounts Payable13,300.00Common Stock10,000.007 Retained Earnings38,000.008 Dividends1,500.009 Fees Earned232,500.0010 Salary and Commission Expense147,700.0011 Rent Expense28,000.0012 Advertising Expense17,700.0013 Automobile Expense4,200.0014 Miscellaneous Expense3,900.00| 15 Totals293,800.00293,800.00The following business transactions were completed by Elite Realty during April 20Y3. Enter the transactions through the 23rd on Page 18 of the two-column journal:Apr.1Paid rent on office for month, $3,500.2Purchased office supplies on account, $2,300.5Paid insurance premiums, $5,900.10Received cash from clients on account, $52,400.15Purchased land for a future building site for $208,500, paying $26,000 in cash and giving a notepayable for the remainder.17Paid creditors on account, $6,25020Returned a portion of the office supplies purchased on April 2, receiving full credit for their cost, $350.23Paid advertising expense, $4,050.

"Since you have specifically asked for question 4, so, we will solve that for you."

Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 20Y3, follows: Elite Realty UNADJUSTED TRIAL BALANCE March 31, 20Y3 ACCOUNT TITLE DEBIT CREDIT 1 Cash 26,700.00 2 Accounts Receivable 59,100.00 3 Prepaid Insurance 3,500.00 4 Office Supplies 1,500.00 5 Accounts Payable 13,300.00 6 Common Stock 10,000.00 7 Retained Earnings 38,000.00 8 Dividends 1,500.00 9 Fees Earned 232,500.00 10 Salary and Commission Expense 147,700.00 11 Rent Expense 28,000.00 12 Advertising Expense 17,700.00 13 Automobile Expense 4,200.00 14 Miscellaneous Expense 3,900.00 15 Totals 293,800.00 293,800.00 The following business transactions were completed by Elite Realty during April 20Y3. Enter the transactions through the 23rd on Page 18 of the two-column joul Apr. 1 Paid rent on office for month, $3,500. 2 Purchased office supplies on account, $2,300. Paid insurance premiums, $5,900. 10 Received cash from clients on account, $52,400. 15 Purchased land for a future building site for $208,500, paying $26,000 in cash and giving a note payable for the remainder. 17 Paid creditors on account, $6,250 20 Returned a portion of the office supplies purchased on April 2, receiving full credit for their cost, $350. 23 Paid advertising expense, $4,050.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Accounts Receivable
3	Prepaid Insurance
4	Office Supplies
5	Land
6	Accounts Payable
7	Unearned Rent
8	Notes Payable
9	Common Stock
10	Retained Earnings
11	Dividends
12	Fees Earned
13	Salary and Commission Expense
14	Rent Expense
15	Advertising Expense
16	Automobile Expense
17	Miscellaneous Expense
18	Totals