PR 2-2A Journal entries and trial balanceOn August 1, 2016, Bill Hudson established Heritage Realty, which completed the fol-lowing transactions during the month:OBJ. 1, 2, 3, 4a. Bill Hudson transferred cash from a personal bank account to an account to be usedfor the business, $30,000.b. Paid rent on office and equipment for the month, $3,250.c. Purchased supplies on account, $2,150.d. Paid creditor on account, $875.e. Earned sales commissions, receiving cash, $14.440.f. Paid automobile expenses (including rental charge) for month, $1.580, and miscel-laneous expenses, $650.g. Paid office salaries, $3,000.h. Determined that the cost of supplies used was $1,300.L Withdrew cash for personal use, $2.500.Instructions1. Journalize entries for transactions (a) threough (i), using the following account titles:Cash; Supplies, Accounts Payable; Bill Hudson, Capital; Bill Hudson, Drawing, SalesCommissions: Rent Expense; Office Salaries Expense, Automobile Expense; SuppliesExpense; Miscellaneous Expense. Explanations may be omitted.2. Prepare T accounts, using the account titles in (1). Post the journal entries to theseaccounts, placing the appropriate letter to the left of each amount to identify thetransactions. Determine the account balances, after all posting is complete. Accountscontaining only a single entry do not need a balance.3. Prepare an unadjusted trial balance as of August 31, 2016.4. Determine the following:a. Amount of total revernue recorded in the ledge.b. Amount of total expenses recorded in the ledger.c. Amount of net income for August.5. Determine the increase or decrease in owner's equity for August.

Journal entries refers to the process of systematic documentation or recording of the financial…

On August 1, 2016, Bill Hudson established Heritage Realty, which completed the fol- lowing transactions during the month: a. Bill Hudson transferred cash from a personal bank account to an account to be used for the business, $30,000. b. Paid rent on office and equipment for the month, $3,250. c. Purchased supplies on account, $2,150. d. Paid creditor on account, $875. e. Earned sales commissions, receiving cash, $14,440. Paid

On August 1, 2016, Bill Hudson established Heritage Realty, which completed the fol- lowing transactions during the month: a. Bill Hudson transferred cash from a personal bank account to an account to be used for the business, $30,000. b. Paid rent on office and equipment for the month, $3,250. c. Purchased supplies on account, $2,150. d. Paid creditor on account, $875. e. Earned sales commissions, receiving cash, $14,440. Paid

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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