On October 1, 20Y6, 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, $31,500.   2 Paid rent on office and equipment for the month, $2,650.   3 Purchased supplies on account, $2,200.   4 Paid creditor on account, $830.   5 Earned sales commissions, receiving cash, $14,580.   6 Paid automobile expenses (including rental charge) for month, $1,630, and miscellaneous expenses, $460.   7 Paid office salaries, $2,400.   8 Determined that the cost of supplies used was $1,150.   9 Paid dividends, $3,200.   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, 20Y6. 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
On October 1, 20Y6, 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, $31,500.
  2 Paid rent on office and equipment for the month, $2,650.
  3 Purchased supplies on account, $2,200.
  4 Paid creditor on account, $830.
  5 Earned sales commissions, receiving cash, $14,580.
  6 Paid automobile expenses (including rental charge) for month, $1,630, and miscellaneous expenses, $460.
  7 Paid office salaries, $2,400.
  8 Determined that the cost of supplies used was $1,150.
  9 Paid dividends, $3,200.
 
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, 20Y6.
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.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Completing the Accounting Cycle
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.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education