On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month:Jan.1Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $31,500. 2Paid rent on office and equipment for the month, $2,750. 3Purchased supplies on account, $2,350. 4Paid creditor on account, $800. 5Earned fees, receiving cash, $16,160. 6Paid automobile expenses (including rental charge) for month, $1,640, and miscellaneous expenses, $450. 7Paid office salaries, $2,400. 8Determined that the cost of supplies used was $1,150. 9Withdrew cash for personal use, $2,000. Required:1.Journalize entries for transactions Jan. 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 January 31, 2019.4.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 January.5.Determine the increase or decrease in owner’s equity for January.

Question
Asked Aug 31, 2019
1181 views
On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month:
Jan. 1 Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $31,500.
  2 Paid rent on office and equipment for the month, $2,750.
  3 Purchased supplies on account, $2,350.
  4 Paid creditor on account, $800.
  5 Earned fees, receiving cash, $16,160.
  6 Paid automobile expenses (including rental charge) for month, $1,640, and miscellaneous expenses, $450.
  7 Paid office salaries, $2,400.
  8 Determined that the cost of supplies used was $1,150.
  9 Withdrew cash for personal use, $2,000.
 
Required:
1. Journalize entries for transactions Jan. 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 January 31, 2019.
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 January.
5. Determine the increase or decrease in owner’s equity for January.
check_circle

Expert Answer

star
star
star
star
star
1 Rating
Step 1

1. Journal entries are as follows:

 

help_outline

Image Transcriptionclose

Debit (S) Credit (S) Accounts title and Explanation Date 31,500 Cash 1 Person SM, Capital 31,500 (To record the capital introduced) Rent Expense 2,750 2,750 Cash |(To record the rent paid) |Supplies Accounts Payable |(To record the supplies purchased) 2,350 3 2,350 Accounts Payable 4 800 Cash 800 (To record the cash paid) Cash 5 16,160 Fees earned 16,160 |(To record the fees earned)

fullscreen
Step 2
help_outline

Image Transcriptionclose

Automobile Expenses Miscellaneous Expense 1,640 6 450 2,090 Cash (To record the automobile & miscellaneous expense) Salaries Expense 2,400 2,400 Cash To record the salaries expense) 8 Supplies Expense Supplies |(To record the supplies expense) 1,150 1,150 |Person SM, Withdrawal 2,000 Cash 2,000 (To record the cash withdrawal)

fullscreen
Step 3

Post the journal entries to the&nb...

help_outline

Image Transcriptionclose

Automobile expenses Cash 1 31,500 2,750 6 1,640 5 16,160 s00 2,090 Ending balance 1,640 2,400 2,000 Rent expenses 2,750 Ending balance 37,620 2 Supplies 2,350 1,150 Ending balance 2,750 3 Miscellaneous expenses Ending balance 1,200 6 450 Accounts payable Ending balance 450 4 S00 2,350 Salaries expenses 1,550 Ending balance 7 2,400 Person SM, Capital 31,500 Ending balance 2,400 1 Supplies expenses 31,500 Ending balance 1,150 Ending balance 2,400 Person SM, Withdrawal 2,000 Ending balance 2,000 Fee earned 16,160 5 16,160 Ending balance

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: The charges to Work in Process—Assembly Department for a period, together with information concernin...

A: a.Compute the number of units in work in process at the end of the period.

question_answer

Q: Toxaway Company is a merchandiser that segments its business into two divisions—Commercial and Resid...

A: Since we only answer up to 3 sub-parts, we'll answer the first 3. Please resubmit the question ans s...

question_answer

Q: Easter Supply sells a variety of merchandise to retail stores on account, but it insists that any cu...

A: Click to see the answer

question_answer

Q: On December 31, 2020, Holmes Company has $7,000,000 of short-term debt in the form of notes payable ...

A: Prepare partial balance sheet for Holmes Company at December 31, 2020.

question_answer

Q: Late in the year, sofware city began carry WorldCrafter, a new word processing software program. At ...

A: a. 1. Prepare the journal entry to record the write down at December 31.

question_answer

Q: Can somebody check my work on the attached image that I have done so far?  Additionally, I am having...

A: The value of applied manufacturing overhead is shown below:

question_answer

Q: what are payroll deductions

A: Payroll deductions are the amounts which are mandatorily or voluntarily deducted by the employer fro...

question_answer

Q: shown is the information needed to prepare a bank reconciliation for Warren Electric at December 31....

A: Bank Reconciliation Statement: Bank statement is prepared by bank. The company maintains its own rec...

question_answer

Q: I am looking for help with question 4 and 5.   The Walton Toy Company manufactures a line of dolls a...

A: 4. Calculate the contribution margin with the constrained resource.