Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2019, follows: Elite Realty Unadjusted Trial Balance March 31, 2019 Account No. Debit Balances Credit Balances 11 Cash 12,960 12 Accounts Receivable 30,190 13 Prepaid Insurance 1,470 14 Office Supplies 880 16 Land — 21 Accounts Payable 8,540 22 Unearned Rent — 23 Notes Payable — 31 Lester Wagner, Capital 26,500 32 Lester Wagner, Drawing 1,030 41 Fees Earned 147,250 51 Salary and Commission Expense 107,780 52 Rent Expense 14,730 53 Advertising Expense 8,690 54 Automobile Expense 2,650 59 Miscellaneous Expense 1,910 182,290 182,290 The following business transactions were completed by Elite Realty during April 2019: Apr. 1. Paid rent on office for month, $4,890. 2. Purchased office supplies on account, $1,270. 5. Paid insurance premiums, $3,520. 10. Received cash from clients on account, $24,450. 15. Purchased land for a future building site for $88,000, paying $9,700 in cash and giving a note payable for the remainder. 17. Paid creditors on account, $4,400. 20. Returned a portion of the office supplies purchased on April 2, receiving full credit for their cost, $200. 23. Paid advertising expense, $1,960. 27. Discovered an error in computing a commission; received cash from the salesperson for the overpayment, $980. 28. Paid automobile expense (including rental charges for an automobile), $1,470. 29. Paid miscellaneous expenses, $440. 30. Recorded revenue earned and billed to clients during the month, $29,340. 30. Paid salaries and commissions for the month, $6,580. 30. Withdrew cash for personal use, $980. 30. Rented land purchased on April 15 to local merchants association for use as a parking lot in May and June, during a street rebuilding program; received advance payment of $2,930. Required: Use the attached spreadsheet to complete parts 1 and 3. Click on the Spreadsheet icon to open and save the Excel file to your computer. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. 1. Record the April 1, 2019, balance of each account in the appropriate balance column of a four-column account. The word Balance has been entered in the item section and a check mark (√) has been placed in the Posting Reference column. 2. Journalize and insert the posting reference for the transactions for April in a two-column journal beginning on Page 18. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank.

Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2019, follows: Elite Realty Unadjusted Trial Balance March 31, 2019 Account No. Debit Balances Credit Balances 11 Cash 12,960 12 Accounts Receivable 30,190 13 Prepaid Insurance 1,470 14 Office Supplies 880 16 Land — 21 Accounts Payable 8,540 22 Unearned Rent — 23 Notes Payable — 31 Lester Wagner, Capital 26,500 32 Lester Wagner, Drawing 1,030 41 Fees Earned 147,250 51 Salary and Commission Expense 107,780 52 Rent Expense 14,730 53 Advertising Expense 8,690 54 Automobile Expense 2,650 59 Miscellaneous Expense 1,910 182,290 182,290 The following business transactions were completed by Elite Realty during April 2019: Apr. 1. Paid rent on office for month, $4,890. 2. Purchased office supplies on account, $1,270. 5. Paid insurance premiums, $3,520. 10. Received cash from clients on account, $24,450. 15. Purchased land for a future building site for $88,000, paying $9,700 in cash and giving a note payable for the remainder. 17. Paid creditors on account, $4,400. 20. Returned a portion of the office supplies purchased on April 2, receiving full credit for their cost, $200. 23. Paid advertising expense, $1,960. 27. Discovered an error in computing a commission; received cash from the salesperson for the overpayment, $980. 28. Paid automobile expense (including rental charges for an automobile), $1,470. 29. Paid miscellaneous expenses, $440. 30. Recorded revenue earned and billed to clients during the month, $29,340. 30. Paid salaries and commissions for the month, $6,580. 30. Withdrew cash for personal use, $980. 30. Rented land purchased on April 15 to local merchants association for use as a parking lot in May and June, during a street rebuilding program; received advance payment of $2,930. Required: Use the attached spreadsheet to complete parts 1 and 3. Click on the Spreadsheet icon to open and save the Excel file to your computer. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. 1. Record the April 1, 2019, balance of each account in the appropriate balance column of a four-column account. The word Balance has been entered in the item section and a check mark (√) has been placed in the Posting Reference column. 2. Journalize and insert the posting reference for the transactions for April in a two-column journal beginning on Page 18. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 8RE: At the end of 2019, Framber Company received 8,000 as a prepayment for renting a building to a...

See similar textbooks

Related questions

Question

Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2019, follows:

Elite Realty
Unadjusted Trial Balance
March 31, 2019
Account No.		Debit Balances	Credit Balances
11	Cash	12,960
12	Accounts Receivable	30,190
13	Prepaid Insurance	1,470
14	Office Supplies	880
16	Land	—
21	Accounts Payable		8,540
22	Unearned Rent		—
23	Notes Payable		—
31	Lester Wagner, Capital		26,500
32	Lester Wagner, Drawing	1,030
41	Fees Earned		147,250
51	Salary and Commission Expense	107,780
52	Rent Expense	14,730
53	Advertising Expense	8,690
54	Automobile Expense	2,650
59	Miscellaneous Expense	1,910
		182,290	182,290

The following business transactions were completed by Elite Realty during April 2019:

Apr. 1.	Paid rent on office for month, $4,890.
2.	Purchased office supplies on account, $1,270.
5.	Paid insurance premiums, $3,520.
10.	Received cash from clients on account, $24,450.
15.	Purchased land for a future building site for $88,000, paying $9,700 in cash
	and giving a note payable for the remainder.
17.	Paid creditors on account, $4,400.
20.	Returned a portion of the office supplies purchased on April 2, receiving
	full credit for their cost, $200.
23.	Paid advertising expense, $1,960.
27.	Discovered an error in computing a commission; received cash from the salesperson
	for the overpayment, $980.
28.	Paid automobile expense (including rental charges for an automobile), $1,470.
29.	Paid miscellaneous expenses, $440.
30.	Recorded revenue earned and billed to clients during the month, $29,340.
30.	Paid salaries and commissions for the month, $6,580.
30.	Withdrew cash for personal use, $980.
30.	Rented land purchased on April 15 to local merchants association for use as a parking lot in May and June, during a street rebuilding program; received advance payment of $2,930.

Required:

Use the attached spreadsheet to complete parts 1 and 3. Click on the Spreadsheet icon to open and save the Excel file to your computer. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem.

1. Record the April 1, 2019, balance of each account in the appropriate balance column of a four-column account. The word Balance has been entered in the item section and a check mark (√) has been placed in the Posting Reference column.

2. Journalize and insert the posting reference for the transactions for April in a two-column journal beginning on Page 18. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank.

3. Post to the ledger, extending the account balance to the appropriate balance column after each posting.

4. Using the balances from the spreadsheet, prepare an unadjusted trial balance of the ledger as of April 30, 2019. If an amount box does not require an entry, leave it blank.

5a. Assume that the April 30 transaction for salaries and commissions should have been $5,680. As a result, the unadjusted trial balance in (4) would

5b. Assume that the April 30 transaction for salaries and commissions should have been $5,680. Journalize the correcting entry. If an amount box does not require an entry, leave it blank.

5c. Assume that the April 30 transaction for salaries and commissions should have been $5,680. Is this error a transposition or slide?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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.