Journal entries and trial balanceOn October 1, 2016, Jay Crowley established Affordable Realty, whichcompleted the following transactions during the month:a. Jay Crowley transferred cash from a personal bank account to anaccount to be used for the business in exchange for common stock, $40,000.b. Paid rent on office and equipment for the month, $4,800.c. Purchased supplies on account, $2,150.d. Paid creditor on account $ 1,100.e. Earned sales commissions, receiving cash, $18,750. f. Paid automobile expenses (including rental charge) for month, $1,560,nd miscellaneous expenses, $800.g. Paid office salaries, $5,500.h. Determined that the cost of supplies used was $1,500.i. Paid dividends, $1,500. Instructions1. Journalize entries for transactions (a) through (i), using the followingaccount titles: Cash, Supplies, Accounts Payable, Common Stock,Dividends, Sales Commissions, Kent Expense, Office Salaries Expense.Automobile Expense, Supplies Expense, Miscellaneous Expense.Explanations may be omitted. 2. Prepare T accounts, using the account titles in (1). Post the journalentries to these accounts, placing the appropriate letter to the left ofeach amount to identify the transactions. Determine the accountbalances after all posting is complete. Accounts containing only a singleentry' do not need a balance.3. Prepare an unadjusted trial balance as of October 31, 20Y6. 4. Determine the following:3. Amount of total revenue recorded in die 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.
On October 1, 2016, Jay Crowley established Affordable Realty, which
completed the following transactions during the month:
a. 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.
b. Paid rent on office and equipment for the month, $4,800.
c. Purchased supplies on account, $2,150.
d. Paid creditor on account $ 1,100.
e. Earned sales commissions, receiving cash, $18,750.
f. Paid automobile expenses (including rental charge) for month, $1,560,
nd miscellaneous expenses, $800.
g. Paid office salaries, $5,500.
h. Determined that the cost of supplies used was $1,500.
i. Paid dividends, $1,500.
Instructions
1. Journalize entries for transactions (a) through (i), using the following
account titles: Cash, Supplies, Accounts Payable, Common Stock,
Dividends, Sales Commissions, Kent Expense, Office Salaries Expense.
Automobile Expense, Supplies Expense, Miscellaneous Expense.
Explanations may be omitted.
2. Prepare T accounts, using the account titles in (1). Post the journal
entries to these accounts, placing the appropriate letter 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:
3. Amount of total revenue recorded in die ledger.
b. Amount of total expenses recorded in the ledger.
C. Amount of net income for October.
5. Determine the increase or decrease in
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