On October 1, 2018, Jay Crowley established Affordable Realty, which completed the following transactions during the month: Oct. 1 Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $40,000. 2 Paid rent on office and equipment for the month, $4,800. 3 Purchased supplies on account, $2,150. 4 Paid creditor on account, $1,100. 5 Earned sales commissions, receiving cash, $18,750. 6 Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $800. 7 Paid office salaries, $3,500. 8 Determined that the cost of supplies used was $1,300. 9 Paid dividends, $1,500. 1. Journalize entries for transactions Oct. 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 October 31, 2018.
On October 1, 2018, Jay Crowley established Affordable Realty, which completed the following transactions during the month: Oct. 1 Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $40,000. 2 Paid rent on office and equipment for the month, $4,800. 3 Purchased supplies on account, $2,150. 4 Paid creditor on account, $1,100. 5 Earned sales commissions, receiving cash, $18,750. 6 Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $800. 7 Paid office salaries, $3,500. 8 Determined that the cost of supplies used was $1,300. 9 Paid dividends, $1,500. 1. Journalize entries for transactions Oct. 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 October 31, 2018.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
Question
On October 1, 2018, Jay Crowley established Affordable Realty, which completed the following transactions during the month:
Oct. | 1 | Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $40,000. |
2 | Paid rent on office and equipment for the month, $4,800. | |
3 | Purchased supplies on account, $2,150. | |
4 | Paid creditor on account, $1,100. | |
5 | Earned sales commissions, receiving cash, $18,750. | |
6 | Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $800. | |
7 | Paid office salaries, $3,500. | |
8 | Determined that the cost of supplies used was $1,300. | |
9 | Paid dividends, $1,500. |
1. | Journalize entries for transactions Oct. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles. | ||||||
2. | |||||||
3. | Prepare an unadjusted |
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4. | Determine the following:
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5. | Determine the increase or decrease in |
Chart of Accounts
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||
Affordable Realty | |||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||
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Journal
1. Journalize entries for transactions Oct. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 1
JOURNAL
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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T Accounts
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.
Cash | |||
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Bal. |
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Unadjusted Trial Balance
3. Prepare an unadjusted trial balance as of October 31, 2018.
Affordable Realty
UNADJUSTED TRIAL BALANCE
October 31, 2018
ACCOUNT TITLE | DEBIT | CREDIT | |
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Supplies
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Accounts Payable
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Common Stock
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Dividends
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Sales Commissions
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Office Salaries Expense
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Totals
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Final Questions
4. Determine the following:
a. Amount of total revenue recorded in the ledger.
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b. Amount of total expenses recorded in the ledger.
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c. Amount of net income for October.
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5. Determine the increase or decrease in retained earnings for October.
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