On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: Jan. 1 Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $31,500. 2 Paid rent on office and equipment for the month, $2,750. 3 Purchased supplies on account, $2,350. 4 Paid creditor on account, $800. 5 Earned fees, receiving cash, $16,160. 6 Paid automobile expenses (including rental charge) for month, $1,640, and miscellaneous expenses, $450. 7 Paid office salaries, $2,400. 8 Determined that the cost of supplies used was $1,150. 9 Withdrew cash for personal use, $2,000. Required: 1. Journalize entries for transactions Jan. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles. 2. Post the journal entries to the T accounts, selecting the appropriate date 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, 2019. 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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On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month:

Jan.	1	Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $31,500.
	2	Paid rent on office and equipment for the month, $2,750.
	3	Purchased supplies on account, $2,350.
	4	Paid creditor on account, $800.
	5	Earned fees, receiving cash, $16,160.
	6	Paid automobile expenses (including rental charge) for month, $1,640, and miscellaneous expenses, $450.
	7	Paid office salaries, $2,400.
	8	Determined that the cost of supplies used was $1,150.
	9	Withdrew cash for personal use, $2,000.

Required:

Journalize entries for transactions Jan. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles.

Post the journal entries to the T accounts, selecting the appropriate date 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 January 31, 2019.

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.

Determine the increase or decrease in owner’s equity for January.

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