Journal entries and trial balance On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month: Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for Common Stock, $32,000.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Journal entries and trial balance

On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month:

Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for Common Stock, $32,000.

Purchased supplies on account, $1,730.

Earned sales commissions, receiving cash, $26,560.

Paid rent on office and equipment for the month, $5,840.

Paid creditor on account, $640.

Paid dividends, $1,570.

Paid automobile expenses (including rental charge) for month, $1,620, and miscellaneous expenses, $1090.

Paid office salaries, $3,400.

Determined that the cost of supplies used was $960.

Required:

Question Content Area

1. Journalize entries for transactions (a) through (i), using the following account titles: Cash, Supplies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. If an amount box does not require an entry, leave it blank.

Transaction Account Debit Credit
a.   a. a.
    - Select - - Select -
b.   b. b.
    - Select - - Select -
c.   c. c.
    - Select - - Select -
d.   d. d.
    - Select - - Select -
e.   e. e.
    - Select - - Select -
f.   f. f.
    - Select - - Select -
g.   g. g.
    - Select - - Select -
    - Select - - Select -
h.   h. h.
    - Select - - Select -
i.   i. i.
    - Select - - Select -

Question Content Area

2. Prepare T accounts, using the account titles in (1). Post (in chronological order) the journal entries to these accounts, selecting 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.

Cash
Transaction Debit amount Transaction Credit amount
       
       
       
       
       
Bal.      

 

Supplies
Transaction Debit amount Transaction Credit amount
fill in the blank 16 of 41

a.b.c.d.e.f.g.h.i.

fill in the blank 17 of 41 fill in the blank 18 of 41

a.b.c.d.e.f.g.h.i.

fill in the blank 19 of 41
Bal. fill in the blank 20 of 41    

 

Accounts Payable
Transaction Debit amount Transaction Credit amount
    Bal.  

 

Common Stock
Transaction Debit amount Transaction Credit amount
       

 

Dividends
Transaction Debit amount Transaction Credit amount
       

 

Sales Commissions
Transaction Debit amount Transaction Credit amount
       

 

Rent Expense
Transaction Debit amount Transaction Credit amount
       

 

Office Salaries Expense
Transaction Debit amount Transaction Credit amount
       

 

Automobile Expense
Transaction Debit amount Transaction Credit amount
       

 

Supplies Expense
Transaction Debit amount Transaction Credit amount
       

 

Miscellaneous Expense
Transaction Debit amount Transaction Credit amount
       

Question Content Area

3. Prepare an unadjusted trial balance as of August 31, 20Y7. List all accounts in the order of Assets, Liabilities, Stockholders’ equity, Revenues, and Expenses. If an amount box does not require an entry, leave it blank.

Planet RealtyUnadjusted Trial BalanceAugust 31, 20Y7
Account Debit Balances Credit Balances
     
     
     
     
     
     
     
     
     
     
     
Total Total Total

Question Content Area

4. Determine the following:

a. Amount of total revenue recorded in the ledger.
fill in the blank 1 of 1$

b. Amount of total expenses recorded in the ledger.
fill in the blank 1 of 1$

c. Amount of net income for August.
fill in the blank 1 of 1$

5. Determine the increase or decrease in retained earnings for August.
fill in the blank 1 of 1$   

IncreaseDecrease

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