FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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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