On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: Sharon Matthews transferred cash from his personal bank account to a new account to start a new business, $40,000. Paid rent on office for the month, $6,000. Purchased supplies on account, $3,200. Paid creditor on account, $1,750. Earned fees, receiving cash, $18,250. Paid automobile expenses (including rental charge) for month, $1,880, and miscellaneous expenses, $420. Paid office salaries, $5,000. Determined that the cost of supplies used was $1,400. Withdrew cash for personal use, $2,000. Instructions Journalize entries for transactions (1) through (9), using the following account titles: Cash; Supplies; Accounts Payable; Capital; Drawing; Fees revenues; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. (Explanations may be omitted). Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, and Determine the account balances after all posting is complete. Prepare an unadjusted trial balance as of January 31, 2019. Determine the increase or decrease in owner's equity for January.
On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: Sharon Matthews transferred cash from his personal bank account to a new account to start a new business, $40,000. Paid rent on office for the month, $6,000. Purchased supplies on account, $3,200. Paid creditor on account, $1,750. Earned fees, receiving cash, $18,250. Paid automobile expenses (including rental charge) for month, $1,880, and miscellaneous expenses, $420. Paid office salaries, $5,000. Determined that the cost of supplies used was $1,400. Withdrew cash for personal use, $2,000. Instructions Journalize entries for transactions (1) through (9), using the following account titles: Cash; Supplies; Accounts Payable; Capital; Drawing; Fees revenues; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. (Explanations may be omitted). Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, and Determine the account balances after all posting is complete. Prepare an unadjusted trial balance as of January 31, 2019. Determine the increase or decrease in owner's equity for January.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month:
- Sharon Matthews transferred cash from his personal bank account to a new account to start a new business, $40,000.
- Paid rent on office for the month, $6,000.
- Purchased supplies on account, $3,200.
- Paid creditor on account, $1,750.
- Earned fees, receiving cash, $18,250.
- Paid automobile expenses (including rental charge) for month, $1,880, and miscellaneous expenses, $420.
- Paid office salaries, $5,000.
- Determined that the cost of supplies used was $1,400.
- Withdrew cash for personal use, $2,000.
Instructions
- Journalize entries for transactions (1) through (9), using the following account titles:
Cash; Supplies; Accounts Payable; Capital; Drawing; Fees revenues; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. (Explanations may be omitted).
- Prepare T accounts, using the account titles in (1).
Post the journal entries to these accounts, and Determine the account balances after all posting is complete. - Prepare an unadjusted
trial balance as of January 31, 2019. - Determine the increase or decrease in owner's equity for January.
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