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 this time.) Refer to the Chart of Accounts for exact wording of account titles.PAGE 20 JOURNALACCOUNTING EQUATION DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1 2 (c) Is this error a transposition or slide? 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. 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?

We have the following question: Q.5) Assume that the April 30 transaction for salaries and…

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), $1,600. 29 Paid miscellaneous expenses, $1,700. 30 Recorded revenue earned and billed to clients during the month, $56,000. 30 Paid salaries and commissions for the month, $13,500. 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 $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 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, 2OY3. 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 this time.) (c) Is this error a transposition or slide?

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
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2