On October 1, 2018, Jay Crowley established Affordable Realty, which completed the following transactions during the month:Oct.1Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $40,000. 2Paid rent on office and equipment for the month, $4,800. 3Purchased supplies on account, $2,150. 4Paid creditor on account, $1,100. 5Earned sales commissions, receiving cash, $18,750. 6Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $800. 7Paid office salaries, $3,500. 8Determined that the cost of supplies used was $1,300. 9Paid 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, 2018.4.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 October.5.Determine the increase or decrease in retained earnings for October. Chart of Accounts CHART OF ACCOUNTSAffordable RealtyGeneral Ledger ASSETS11Cash12Supplies LIABILITIES21Accounts Payable EQUITY31Common Stock33Dividends REVENUE41Sales Commissions EXPENSES51Rent Expense52Office Salaries Expense53Automobile Expense54Supplies Expense55Miscellaneous Expense Journal 1. Journalize entries for transactions Oct. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles.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 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 Bal. Supplies Bal. Accounts Payable Bal. Common Stock Dividends Sales Commissions Rent Expense Office Salaries Expense Automobile Expense Supplies Expense Miscellaneous Expense Unadjusted Trial Balance 3. Prepare an unadjusted trial balance as of October 31, 2018. Affordable RealtyUNADJUSTED TRIAL BALANCEOctober 31, 2018 ACCOUNT TITLEDEBITCREDIT1Cash 2Supplies 3Accounts Payable 4Common Stock 5Dividends 6Sales Commissions 7Rent Expense 8Office Salaries Expense 9Automobile Expense 10Supplies Expense 11Miscellaneous Expense 12Totals Final Questions 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 October. 5. Determine the increase or decrease in retained earnings for October.

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Description: On October 1, 2018, Jay Crowley established Affordable Realty, which completed the following transactions during the month:Oct.1Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common

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Answered: On October 1, 2018, Jay Crowley…

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 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.

Journalize entries for transactions Oct. 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 October 31, 2018.

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 October.

Determine the increase or decrease in retained earnings for October.

Chart of Accounts

CHART OF ACCOUNTS

Affordable Realty

General Ledger

	ASSETS
11	Cash
12	Supplies

	LIABILITIES
21	Accounts Payable

	EQUITY
31	Common Stock
33	Dividends

	REVENUE
41	Sales Commissions

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

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

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

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






Bal.

Supplies


Bal.

Accounts Payable


		Bal.

Common Stock

Dividends

Sales Commissions

Rent Expense

Office Salaries Expense

Automobile Expense

Supplies Expense

Miscellaneous Expense

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
1	Cash
2	Supplies
3	Accounts Payable
4	Common Stock
5	Dividends
6	Sales Commissions
7	Rent Expense
8	Office Salaries Expense
9	Automobile Expense
10	Supplies Expense
11	Miscellaneous Expense
12	Totals

Final Questions

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 October.

5. Determine the increase or decrease in retained earnings for October.

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