On October 1, 2018, Jay Crowley established Affordable Realty, which completed the following transactions during the month: Oct. 1 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.   2 Paid rent on office and equipment for the month, $4,800.   3 Purchased supplies on account, $2,150.   4 Paid creditor on account, $1,100.   5 Earned sales commissions, receiving cash, $18,750.   6 Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $800.   7 Paid office salaries, $3,500.   8 Determined that the cost of supplies used was $1,300.   9 Paid dividends, $1,500.   1. Journalize entries for transactions Oct. 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 October 31, 2018.

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter2: Analyzing Transactions
Section: Chapter Questions
Problem 2PA: Journal entries and trial balance On October 1, 20Y6, Jay Crowley established Affordable Realty,...
icon
Related questions
Topic Video
Question
On October 1, 2018, Jay Crowley established Affordable Realty, which completed the following transactions during the month:
Oct. 1 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.
  2 Paid rent on office and equipment for the month, $4,800.
  3 Purchased supplies on account, $2,150.
  4 Paid creditor on account, $1,100.
  5 Earned sales commissions, receiving cash, $18,750.
  6 Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $800.
  7 Paid office salaries, $3,500.
  8 Determined that the cost of supplies used was $1,300.
  9 Paid dividends, $1,500.
 
1. Journalize entries for transactions Oct. 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 October 31, 2018.
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 October.
5. Determine the increase or decrease in retained earnings for October.
 
 
Chart of Accounts
 
 
CHART OF ACCOUNTS
Affordable Realty
General Ledger
  ASSETS
11 Cash
12 Supplies
  LIABILITIES
21 Accounts Payable
  EQUITY
31 Common Stock
33 Dividends
  REVENUE
41 Sales Commissions
  EXPENSES
51 Rent Expense
52 Office Salaries Expense
53 Automobile Expense
54 Supplies Expense
55 Miscellaneous Expense
 
 
Journal
 
 
1. Journalize entries for transactions Oct. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 1
 
JOURNAL
ACCOUNTING EQUATION
 
  DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY
1
 
 
 
 
 
 
 
 
2
 
 
 
 
 
 
 
 
3
 
 
 
 
 
 
 
 
4
 
 
 
 
 
 
 
 
5
 
 
 
 
 
 
 
 
6
 
 
 
 
 
 
 
 
7
 
 
 
 
 
 
 
 
8
 
 
 
 
 
 
 
 
9
 
 
 
 
 
 
 
 
10
 
 
 
 
 
 
 
 
11
 
 
 
 
 
 
 
 
12
 
 
 
 
 
 
 
 
13
 
 
 
 
 
 
 
 
14
 
 
 
 
 
 
 
 
15
 
 
 
 
 
 
 
 
16
 
 
 
 
 
 
 
 
17
 
 
 
 
 
 
 
 
18
 
 
 
 
 
 
 
 
19
 
 
 
 
 
 
 
 
 
 
 
 
T Accounts
 
 
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.
Cash
   
 
   
 
   
 
   
 
       
 
       
 
       
 
       
Bal.
 
   
Supplies
   
 
   
 
       
Bal.
 
   
Accounts Payable
   
 
   
 
       
    Bal.
 
Common Stock
       
 
Dividends
   
 
   
Sales Commissions
       
 
Rent Expense
   
 
   
Office Salaries Expense
   
 
   
Automobile Expense
   
 
   
Supplies Expense
   
 
   
Miscellaneous Expense
   
 
   
 
 
Unadjusted Trial Balance
 
 
3. Prepare an unadjusted trial balance as of October 31, 2018.
 
Affordable Realty
UNADJUSTED TRIAL BALANCE
October 31, 2018
 
  ACCOUNT TITLE DEBIT CREDIT
1
Cash
 
 
2
Supplies
 
 
3
Accounts Payable
 
 
4
Common Stock
 
 
5
Dividends
 
 
6
Sales Commissions
 
 
7
Rent Expense
 
 
8
Office Salaries Expense
 
 
9
Automobile Expense
 
 
10
Supplies Expense
 
 
11
Miscellaneous Expense
 
 
12
Totals
 
 
 
 
 
 
Final Questions
 
 
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 October. 
 
 
5. Determine the increase or decrease in retained earnings for October.
 
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 4 images

Blurred answer
Knowledge Booster
Accounting Equation
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.
Similar questions
Recommended textbooks for you
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College