---**Chapter 2: Analyzing Transactions****PR 2-2A Journal Entries and Trial Balance****Objective: 1,2,3,4**On January 1, 20Y5, Fahad Ali established Mountain Top Realty, which completed the following transactions (a) through (i):a. Fahad Ali transferred cash from a personal bank account to an account to be used for the business, $35,000.b. Purchased supplies on account, $2,320.c. Earned fees received in cash, $24,480.d. Paid office salaries, $6,630.e. Paid office rent for the month, $4,240.f. Paid creditor on account, $1,930.g. Withdrew cash for personal use, $1,000.h. Purchased land for a future building site for $20,000; paid cash.i. Paid cash for miscellaneous expenses, $300.**Instructions:**1. Journalize entries for transactions (a) through (i), using the following account titles: Cash; Supplies; Land; Accounts Payable; Fahad Ali, Capital; Fahad Ali, Drawing; Fees Earned; Rent Expense; Salaries Expense; Miscellaneous Expense. Explanations may be omitted.2. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balances after all posting is complete. Accounts containing only a single entry do not need a balance.3. Prepare an unadjusted trial balance as of January 31, 20Y5.4. Determine the total revenue recorded in the ledger.5. Determine the total expenses for January.6. Determine the amount of net income or net loss for January.7. Determine the increase or decrease in owner’s equity for January.---

Journal entries for the above transactions

Instructions 1. Journalize entries for transactions (a) through (i), using the following account titles: Cash; Supplies; Accounts Payable; Fahad Ali, Capital; Fahad Ali, Drawing; Fees Earned; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscel- laneous Expense. Explanations may be omitted. 2. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the trans- actions. Determine the account balances after all posting is complete. Accounts con- taining only a single entry do not need a balance. 3. Prepare an unadjusted trial balance as of January 31, 20Y5. 4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for January. 5. Determine the increase or decrease in owner's equity for January.

Instructions 1. Journalize entries for transactions (a) through (i), using the following account titles: Cash; Supplies; Accounts Payable; Fahad Ali, Capital; Fahad Ali, Drawing; Fees Earned; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscel- laneous Expense. Explanations may be omitted. 2. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the trans- actions. Determine the account balances after all posting is complete. Accounts con- taining only a single entry do not need a balance. 3. Prepare an unadjusted trial balance as of January 31, 20Y5. 4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for January. 5. Determine the increase or decrease in owner's equity for January.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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