On January 1, 20Y5, Fahad Ali established Mountain Top Realty, which completed the following transactions during the month:Jan.1Fahad Ali transferred cash from a personal bank account to an account to be used for the business, $53,000. 2Paid rent on office and equipment for the month, $7,950. 3Purchased supplies on account, $4,240. 4Paid creditor on account, $2,320. 5Earned fees, receiving cash, $24,180. 6Paid automobile expenses (including rental charge) for month, $2,490, and miscellaneous expenses, $560. 7Paid office salaries, $6,630. 8Determined that the cost of supplies used was $1,860. 9Withdrew cash for personal use, $2,600. Required: Journalize entries for transactions Jan. 1 through 9. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.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. Determine the correct ending balance. The ending balance label is provided on the left side of the T account even when the ending balance is a credit. The unused cell on the balance line should be left blank.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.CHART OF ACCOUNTSMountain Top RealtyGeneral Ledger ASSETS11Cash12Supplies LIABILITIES21Accounts Payable EQUITY31Fahad Ali, Capital32Fahad Ali, Drawing REVENUE41Fees Earned EXPENSES51Rent Expense52Office Salaries Expense53Automobile Expense54Supplies Expense55Miscellaneous Expense 1. Journalize entries for transactions Jan. 1 through 9. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.PAGE 1 JOURNALACCOUNTING EQUATION DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 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. Determine the correct ending balance. The ending balance label is provided on the left side of the T account even when the ending balance is a credit. The unused cell on the balance line should be left blank.Cash Bal. Supplies Bal. Accounts Payable Bal. Fahad Ali, Capital Fahad Ali, Drawing Fees Earned Rent Expense Office Salaries Expense Automobile Expense Supplies Expense Miscellaneous Expense Final Questions4. Determine the following:a. Amount of total revenue recorded in the ledger. $b. Amount of total expenses recorded in the ledger. SC. Amount of net income for January. $5. Determine the increase or decrease in owner's eguity for January.$ Unadjusted Trial Balance3. Prepare an unadjusted trial balance as of January 31, 20Y5.Mountain Top RealtyUNADJUSTED TRIAL BALANCEJanuary 31, 20Y5ACCOUNT TITLEDEBITCREDIT1 Cash2 Supplies3 Accounts Payable4 Fahad Ali, Capital5 Fahad Ali, Drawing6 Fees Earned7 Rent Expense8 Office Salaries Expense9 Automobile Expense10 Supplies Expense11 Miscellaneous Expense12 Totals

Journal entries are prepared to record the financial and non-financial transactions of the business…

Answered: On January 1, 20Y5, Fahad Ali…

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, 20Y5, Fahad Ali established Mountain Top Realty, which completed the following transactions during the month:

Jan.	1	Fahad Ali transferred cash from a personal bank account to an account to be used for the business, $53,000.
	2	Paid rent on office and equipment for the month, $7,950.
	3	Purchased supplies on account, $4,240.
	4	Paid creditor on account, $2,320.
	5	Earned fees, receiving cash, $24,180.
	6	Paid automobile expenses (including rental charge) for month, $2,490, and miscellaneous expenses, $560.
	7	Paid office salaries, $6,630.
	8	Determined that the cost of supplies used was $1,860.
	9	Withdrew cash for personal use, $2,600.

Required:

Journalize entries for transactions Jan. 1 through 9. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

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. Determine the correct ending balance. The ending balance label is provided on the left side of the T account even when the ending balance is a credit. The unused cell on the balance line should be left blank.

Prepare an unadjusted trial balance as of January 31, 20Y5.

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.

CHART OF ACCOUNTSMountain Top RealtyGeneral Ledger

	ASSETS
11	Cash
12	Supplies

	LIABILITIES
21	Accounts Payable

	EQUITY
31	Fahad Ali, Capital
32	Fahad Ali, Drawing

	REVENUE
41	Fees Earned

	EXPENSES
51	Rent Expense
52	Office Salaries Expense
53	Automobile Expense
54	Supplies Expense
55	Miscellaneous Expense

1. Journalize entries for transactions Jan. 1 through 9. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

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. Determine the correct ending balance. The ending balance label is provided on the left side of the T account even when the ending balance is a credit. The unused cell on the balance line should be left blank.

Cash






Bal.

Supplies


Bal.

Accounts Payable


Bal.

Fahad Ali, Capital

Fahad Ali, Drawing

Fees Earned

Rent Expense

Office Salaries Expense

Automobile Expense

Supplies Expense

Miscellaneous Expense

Final Questions
4. Determine the following:
a. Amount of total revenue recorded in the ledger. $
b. Amount of total expenses recorded in the ledger. S
C. Amount of net income for January. $
5. Determine the increase or decrease in owner's eguity for January.
$

Unadjusted Trial Balance
3. Prepare an unadjusted trial balance as of January 31, 20Y5.
Mountain Top Realty
UNADJUSTED TRIAL BALANCE
January 31, 20Y5
ACCOUNT TITLE
DEBIT
CREDIT
1 Cash
2 Supplies
3 Accounts Payable
4 Fahad Ali, Capital
5 Fahad Ali, Drawing
6 Fees Earned
7 Rent Expense
8 Office Salaries Expense
9 Automobile Expense
10 Supplies Expense
11 Miscellaneous Expense
12 Totals

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