Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2018, follows: Elite Realty UNADJUSTED TRIAL BALANCE March 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 26,300.00 2 Accounts Receivable 61,500.00 3 Prepaid Insurance 3,000.00 4 Office Supplies 1,800.00 5 Accounts Payable 14,000.00 6 Common Stock 10,000.00 7 Retained Earnings 36,000.00 8 Dividends 2,000.00 9 Fees Earned 240,000.00 10 Salary and Commission Expense 148,200.00 11 Rent Expense 30,000.00 12 Advertising Expense 17,800.00 13 Automobile Expense 5,500.00 14 Miscellaneous Expense 3,900.00 15 Totals 300,000.00 300,000.00 The following business transactions were completed by Elite Realty during April 2018. Enter the transactions through the 23rd on Page 18 of the two-column journal: Apr. 1 Paid rent on office for month, $6,500. 2 Purchased office supplies on account, $2,300. 5 Paid insurance premiums, $6,000. 10 Received cash from clients on account, $52,300. 15 Purchased land for a future building site for $200,000, paying $30,000 in cash and giving a note payable for the remainder. 17 Paid creditors on account, $6,450. 20 Returned a portion of the office supplies purchased on April 2, receiving full credit for their cost, $325. 23 Paid advertising expense, $4,300. Enter the following transactions on Page 19 of the two-column journal: Apr. 27 Discovered an error in computing a commission; received cash from the salesperson for the overpayment, $2,500. 28 Paid automobile expense (including rental charges for an automobile), $1,500. 29 Paid miscellaneous expenses, $1,400. 30 Recorded revenue earned and billed to clients during the month, $57,000. 30 Paid salaries and commissions for the month, $11,900. 30 Paid dividends, $4,000. 30 Rented land purchased on April 15 to local merchants association for use as a parking lot in May and June, during a street rebuilding program; received advance payment of $10,000. Required: 1. Record the April 1, 2018, balance of each account in the appropriate balance column of a four-column account, type Balance in the item section, 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 account titles. 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. For transactions occurring on the same day, post in the order presented in the instructions. Insert the appropriate posting references in both the journal and the ledger as each item is posted. 4. Prepare an unadjusted trial balance of the ledger as of April 30, 2018. 5. Assume that the April 30 transaction for salaries and commissions should have been $19,100. (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 this time.) (c) Is this error a transposition or slide? CHART OF ACCOUNTS Elite Realty General Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Prepaid Insurance 14 Office Supplies 16 Land LIABILITIES 21 Accounts Payable 22 Unearned Rent 23 Notes Payable EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends REVENUE 41 Fees Earned EXPENSES 51 Salary and Commission Expense 52 Rent Expense 53 Advertising Expense 54 Automobile Expense 59 Miscellaneous Expense

Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2018, follows: Elite Realty UNADJUSTED TRIAL BALANCE March 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 26,300.00 2 Accounts Receivable 61,500.00 3 Prepaid Insurance 3,000.00 4 Office Supplies 1,800.00 5 Accounts Payable 14,000.00 6 Common Stock 10,000.00 7 Retained Earnings 36,000.00 8 Dividends 2,000.00 9 Fees Earned 240,000.00 10 Salary and Commission Expense 148,200.00 11 Rent Expense 30,000.00 12 Advertising Expense 17,800.00 13 Automobile Expense 5,500.00 14 Miscellaneous Expense 3,900.00 15 Totals 300,000.00 300,000.00 The following business transactions were completed by Elite Realty during April 2018. Enter the transactions through the 23rd on Page 18 of the two-column journal: Apr. 1 Paid rent on office for month, $6,500. 2 Purchased office supplies on account, $2,300. 5 Paid insurance premiums, $6,000. 10 Received cash from clients on account, $52,300. 15 Purchased land for a future building site for $200,000, paying $30,000 in cash and giving a note payable for the remainder. 17 Paid creditors on account, $6,450. 20 Returned a portion of the office supplies purchased on April 2, receiving full credit for their cost, $325. 23 Paid advertising expense, $4,300. Enter the following transactions on Page 19 of the two-column journal: Apr. 27 Discovered an error in computing a commission; received cash from the salesperson for the overpayment, $2,500. 28 Paid automobile expense (including rental charges for an automobile), $1,500. 29 Paid miscellaneous expenses, $1,400. 30 Recorded revenue earned and billed to clients during the month, $57,000. 30 Paid salaries and commissions for the month, $11,900. 30 Paid dividends, $4,000. 30 Rented land purchased on April 15 to local merchants association for use as a parking lot in May and June, during a street rebuilding program; received advance payment of $10,000. Required: 1. Record the April 1, 2018, balance of each account in the appropriate balance column of a four-column account, type Balance in the item section, 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 account titles. 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. For transactions occurring on the same day, post in the order presented in the instructions. Insert the appropriate posting references in both the journal and the ledger as each item is posted. 4. Prepare an unadjusted trial balance of the ledger as of April 30, 2018. 5. Assume that the April 30 transaction for salaries and commissions should have been $19,100. (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 this time.) (c) Is this error a transposition or slide? CHART OF ACCOUNTS Elite Realty General Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Prepaid Insurance 14 Office Supplies 16 Land LIABILITIES 21 Accounts Payable 22 Unearned Rent 23 Notes Payable EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends REVENUE 41 Fees Earned EXPENSES 51 Salary and Commission Expense 52 Rent Expense 53 Advertising Expense 54 Automobile Expense 59 Miscellaneous Expense

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2018, follows:

Elite Realty

UNADJUSTED TRIAL BALANCE

March 31, 2018

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	26,300.00
2	Accounts Receivable	61,500.00
3	Prepaid Insurance	3,000.00
4	Office Supplies	1,800.00
5	Accounts Payable		14,000.00
6	Common Stock		10,000.00
7	Retained Earnings		36,000.00
8	Dividends	2,000.00
9	Fees Earned		240,000.00
10	Salary and Commission Expense	148,200.00
11	Rent Expense	30,000.00
12	Advertising Expense	17,800.00
13	Automobile Expense	5,500.00
14	Miscellaneous Expense	3,900.00
15	Totals	300,000.00	300,000.00

The following business transactions were completed by Elite Realty during April 2018. Enter the transactions through the 23rd on Page 18 of the two-column journal:

Apr.	1	Paid rent on office for month, $6,500.
	2	Purchased office supplies on account, $2,300.
	5	Paid insurance premiums, $6,000.
	10	Received cash from clients on account, $52,300.
	15	Purchased land for a future building site for $200,000, paying $30,000 in cash and giving a note payable for the remainder.
	17	Paid creditors on account, $6,450.
	20	Returned a portion of the office supplies purchased on April 2, receiving full credit for their cost, $325.
	23	Paid advertising expense, $4,300.

Enter the following transactions on Page 19 of the two-column journal:

Apr.	27	Discovered an error in computing a commission; received cash from the salesperson for the overpayment, $2,500.
	28	Paid automobile expense (including rental charges for an automobile), $1,500.
	29	Paid miscellaneous expenses, $1,400.
	30	Recorded revenue earned and billed to clients during the month, $57,000.
	30	Paid salaries and commissions for the month, $11,900.
	30	Paid dividends, $4,000.
	30	Rented land purchased on April 15 to local merchants association for use as a parking lot in May and June, during a street rebuilding program; received advance payment of $10,000.

	Required:
1.	Record the April 1, 2018, balance of each account in the appropriate balance column of a four-column account, type Balance in the item section, 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 account titles. 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. For transactions occurring on the same day, post in the order presented in the instructions. Insert the appropriate posting references in both the journal and the ledger as each item is posted.
4.	Prepare an unadjusted trial balance of the ledger as of April 30, 2018.
5.	Assume that the April 30 transaction for salaries and commissions should have been $19,100. (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 this time.) (c) Is this error a transposition or slide?

CHART OF ACCOUNTS

Elite Realty

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Prepaid Insurance
14	Office Supplies
16	Land

	LIABILITIES
21	Accounts Payable
22	Unearned Rent
23	Notes Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends

	REVENUE
41	Fees Earned

	EXPENSES
51	Salary and Commission Expense
52	Rent Expense
53	Advertising Expense
54	Automobile Expense
59	Miscellaneous Expense

(b) Journalize the comecting entry on April 30. Use page 20. (Note: You will not be required to post this entry to the ledger at this time.)
Question not attempted.
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
EQUITY
2

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.