On August 1, 2016, Bill Hudson established Heritage Realty, which completed the following transactions during the month: Investment from owner in exchange for common stock, $30,000. Paid rent on office and equipment for the month, $3,250. Purchased supplies on account, $2,150. Paid creditor on account, $875. Earned sales commissions, receiving cash, $14,440. Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $650. Paid office salaries, $3,000. Determined that the cost of supplies used was $1,300. Paid Cash Dividends, $2,500. Instructions 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. Explanations may be omitted. 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. Prepare an unadjusted trial balance as of August 31, 2016
On August 1, 2016, Bill Hudson established Heritage Realty, which completed the following transactions during the month: Investment from owner in exchange for common stock, $30,000. Paid rent on office and equipment for the month, $3,250. Purchased supplies on account, $2,150. Paid creditor on account, $875. Earned sales commissions, receiving cash, $14,440. Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $650. Paid office salaries, $3,000. Determined that the cost of supplies used was $1,300. Paid Cash Dividends, $2,500. Instructions 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. Explanations may be omitted. 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. Prepare an unadjusted trial balance as of August 31, 2016
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On August 1, 2016, Bill Hudson established Heritage Realty, which completed the following transactions during the month:
- Investment from owner in exchange for common stock, $30,000.
- Paid rent on office and equipment for the month, $3,250.
- Purchased supplies on account, $2,150.
- Paid creditor on account, $875.
- Earned sales commissions, receiving cash, $14,440.
- Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $650.
- Paid office salaries, $3,000.
- Determined that the cost of supplies used was $1,300.
- Paid Cash Dividends, $2,500.
Instructions
- 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. Explanations may be omitted.
- 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. - Prepare an unadjusted
trial balance as of August 31, 2016. - Determine the following:
- Amount of total revenue recorded in the ledger.
- Amount of total expenses recorded in the ledger.
- Amount of net income for August.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 6 images
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education