Valley Realty acts as an agent in buying, selling, renting, and managing real estate. Theunadjusted trial balance on July 31, 2019, follows:Valley RealtyUnadjusted Trial BalanceJuly 31, 2019AccountNo.DebitBalancesCreditBalances52,500Cash11Accounts Receivable. .12100,100Prepaid InsuranceOffice Supplies...Land .Accounts Payable1312,600142,800162121,000Unearned Rent.22Notes Payable..Cindy Getman, Capital..Cindy Getman, Drawing2387,500313244,800Fees Earned....41591,500Salary and Commission Expense..Rent Expense.Advertising Expense..Automobile ExpenseMiscellaneous Expense51385,00049,000525332,20015,75054595,250700,000700,000The following business transactions were completed by Valley Realty during August 2019:1. Purchased office supplies on account, $3,1502. Paid rent on office for month, $7,2003. Received cash from clients on account, $83,900Aug.5. Paid insurance premiums, $12,000.9. Returned a portion of the office supplies purchased on August 1, receiving fullcredit for their cost, $400(Continued) Aug. 17. Paid advertising expense, $8,00023. Paid creditors on account, $13,750.Enter the following transactions on Page 19 of the two-column journal29. Paid miscellaneous expenses, $1,700.30. Paid automobile expense (including rental charges for an automobile), $2,50031. Discovered an error in computing a commission during July; received cashfrom the salesperson for the overpayment, $2,000.31. Paid salaries and commissions for the month, $53,000.31. Recorded revenue earned and billed to clients during the month, $183,500.31. Purchased land for a future building site for $75,000, paying $7,500 in cashand giving a note payable for the remainder.31. Withdrew cash for personal use, $1,00031. Rented land purchased on August 31 to a local university for use as a parking lot during football season (September, October, and November); receivedadvance payment of $5,000Instructions1. Record the August 1 balance of each account in the appropriate balance column of afour-column account, write Balance in the item section, and place a check mark (V)in the Posting Reference column2. Journalize the transactions for August in a two-column journal beginning on Page 18.Journal entry explanations may be omitted.3. Post to the ledger, extending the account balance to the appropriate balance columnafter each posting4. Prepare an unadjusted trial balance of the ledger as of August 31, 2019.5. Assume that the August 31 transaction for Cindy Getman's cash withdrawal should havebeen $10,000. (a) Why did the unadjusted trial balance in (4) balance? (b) Journalizethe correcting entry. (c) Is this error a transposition or slide?

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Asked Nov 30, 2019
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Valley Realty acts as an agent in buying, selling, renting, and managing real estate. The
unadjusted trial balance on July 31, 2019, follows:
Valley Realty
Unadjusted Trial Balance
July 31, 2019
Account
No.
Debit
Balances
Credit
Balances
52,500
Cash
11
Accounts Receivable. .
12
100,100
Prepaid Insurance
Office Supplies...
Land .
Accounts Payable
13
12,600
14
2,800
16
21
21,000
Unearned Rent.
22
Notes Payable..
Cindy Getman, Capital..
Cindy Getman, Drawing
23
87,500
31
32
44,800
Fees Earned....
41
591,500
Salary and Commission Expense..
Rent Expense.
Advertising Expense..
Automobile Expense
Miscellaneous Expense
51
385,000
49,000
52
53
32,200
15,750
54
59
5,250
700,000
700,000
The following business transactions were completed by Valley Realty during August 2019:
1. Purchased office supplies on account, $3,150
2. Paid rent on office for month, $7,200
3. Received cash from clients on account, $83,900
Aug.
5. Paid insurance premiums, $12,000.
9. Returned a portion of the office supplies purchased on August 1, receiving full
credit for their cost, $400
(Continued)
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Valley Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on July 31, 2019, follows: Valley Realty Unadjusted Trial Balance July 31, 2019 Account No. Debit Balances Credit Balances 52,500 Cash 11 Accounts Receivable. . 12 100,100 Prepaid Insurance Office Supplies... Land . Accounts Payable 13 12,600 14 2,800 16 21 21,000 Unearned Rent. 22 Notes Payable.. Cindy Getman, Capital.. Cindy Getman, Drawing 23 87,500 31 32 44,800 Fees Earned.... 41 591,500 Salary and Commission Expense.. Rent Expense. Advertising Expense.. Automobile Expense Miscellaneous Expense 51 385,000 49,000 52 53 32,200 15,750 54 59 5,250 700,000 700,000 The following business transactions were completed by Valley Realty during August 2019: 1. Purchased office supplies on account, $3,150 2. Paid rent on office for month, $7,200 3. Received cash from clients on account, $83,900 Aug. 5. Paid insurance premiums, $12,000. 9. Returned a portion of the office supplies purchased on August 1, receiving full credit for their cost, $400 (Continued)

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Aug. 17. Paid advertising expense, $8,000
23. Paid creditors on account, $13,750.
Enter the following transactions on Page 19 of the two-column journal
29. Paid miscellaneous expenses, $1,700.
30. Paid automobile expense (including rental charges for an automobile), $2,500
31. Discovered an error in computing a commission during July; received cash
from the salesperson for the overpayment, $2,000.
31. Paid salaries and commissions for the month, $53,000.
31. Recorded revenue earned and billed to clients during the month, $183,500.
31. Purchased land for a future building site for $75,000, paying $7,500 in cash
and giving a note payable for the remainder.
31. Withdrew cash for personal use, $1,000
31. Rented land purchased on August 31 to a local university for use as a park
ing lot during football season (September, October, and November); received
advance payment of $5,000
Instructions
1. Record the August 1 balance of each account in the appropriate balance column of a
four-column account, write Balance in the item section, and place a check mark (V)
in the Posting Reference column
2. Journalize the transactions for August in a two-column journal beginning on Page 18.
Journal entry explanations may be omitted.
3. Post to the ledger, extending the account balance to the appropriate balance column
after each posting
4. Prepare an unadjusted trial balance of the ledger as of August 31, 2019.
5. Assume that the August 31 transaction for Cindy Getman's cash withdrawal should have
been $10,000. (a) Why did the unadjusted trial balance in (4) balance? (b) Journalize
the correcting entry. (c) Is this error a transposition or slide?
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Aug. 17. Paid advertising expense, $8,000 23. Paid creditors on account, $13,750. Enter the following transactions on Page 19 of the two-column journal 29. Paid miscellaneous expenses, $1,700. 30. Paid automobile expense (including rental charges for an automobile), $2,500 31. Discovered an error in computing a commission during July; received cash from the salesperson for the overpayment, $2,000. 31. Paid salaries and commissions for the month, $53,000. 31. Recorded revenue earned and billed to clients during the month, $183,500. 31. Purchased land for a future building site for $75,000, paying $7,500 in cash and giving a note payable for the remainder. 31. Withdrew cash for personal use, $1,000 31. Rented land purchased on August 31 to a local university for use as a park ing lot during football season (September, October, and November); received advance payment of $5,000 Instructions 1. Record the August 1 balance of each account in the appropriate balance column of a four-column account, write Balance in the item section, and place a check mark (V) in the Posting Reference column 2. Journalize the transactions for August in a two-column journal beginning on Page 18. Journal entry explanations may be omitted. 3. Post to the ledger, extending the account balance to the appropriate balance column after each posting 4. Prepare an unadjusted trial balance of the ledger as of August 31, 2019. 5. Assume that the August 31 transaction for Cindy Getman's cash withdrawal should have been $10,000. (a) Why did the unadjusted trial balance in (4) balance? (b) Journalize the correcting entry. (c) Is this error a transposition or slide?

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Expert Answer

Step 1

Since you have posted a question with multiple sub-parts, we will solve first three subparts for you. To get remaining sub-part solved please repost the complete question and mention the sub-parts to be solved.

1.) Four column account on 1 Aug 2019 attached .

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Four coulmn account as on 1st Aug 2019 All amnts in $ trial balance credit debit 52500 Income statements Balance sheet credit debit 52500 100100 debit credit Acc no Account Cash 11 accounts receivables Prepaid insurance Office supplies 100100 12 13 12600 12600 2800 14 2800 Land Accounts payable Unearned rent Notes payable Fee earned Salary& commission expenses Rent expenses Advertising expenses Automobile expenses Misc expenses Cindy Getman-capital Less: Cindy Getman- Drawing Net profit 16 21000 21. 21000 22 23 591500 591500 41 385000 51 385000 49000 52 49000 5354 32200 32200 15750 15750 54 5250 59 5250 31 87500 87500 44800 32 44800 104300 104300 700000 700000 591500 591500 212800 212800

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Step 2

2. ) Attached are the journals for the month of Aug'2019.

Please note explainations have been omitted as mentioned in question.

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Amnt in $ 30-08-19 Debit automobile expense a/c Credit cash a/c 2500 Particulars credit debit Date 2500 01-08-19 Debit office supplies a/c Credit Accounts payable a/c 3150 3150 31-08-19 Debit cash a/c 2000 02-08-19 Debit rent expense a/c 7200 Credit Salary and commission expense a/c 2000 Credit cash a/c 7200 31-08-19 Debit Salaries and commission a/c Credit cash a/c 53000 03-08-19 Debit cash a/c 83900 53000 Credit Accounts receivables a/c 83900 05-08-19 Debit Insurance premium expense a/c 31-08-19 Debit accounts receivable a/c Credit fee earned 12000 183500 Credit cash a/c 12000 183500 09-08-19 Debit Accounts payable a/c 400 31-08-19 Debit Land a/c Credit cash a/c Credit notes payable a/c 75000 Credit office supplies 400 7500 17-08-19 Debit advertising expense a/c 67500 8000 Credit Cash a/c 8000 31-08-19 Debit Cindy Getman - drawing a/c credit cash a/c 1000 23-08-19 Debit accounts payable a/c 13,750 1000 Credit cash a/c 13,750 31-08-19 Debit cash a/c 5000 29-08-19 Debit miscellaneous expense a/c 1700 Credit unearned rent a/c 5000 Credit cash a/c 1700

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Step 3

3.) Please find the ledgers accounts attache...

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Cash a/c Credit in $ Date Particulars Debit in $ Date Particulars 01-Aug Bal b/f 03-Aug to a/c receivables 30-Aug to salary and comm 52500 02-Aug by rent expense 05-Aug by insurance premium 17-Aug by advertising expense 23-Aug by a/c payables 7200 83900 12000 2000 8000 31-Aug to unearned rent 5000 13,750 29-Aug by misc expense 30-Aug by automobile exp 31-Aug by salary and commision a/c 31-Aug by land 31-Aug By drawings 31-Aug by bal /f 1700 31-Aug to balance c/t 2500 53000 7500 1000 36750 143400 143400 A/c receivables Debit in $ Date Credit in $ Date Particulars Particulars 01-Aug to bal b/f 31-Aug to fee earned 03-Aug by cash 31-Aug by bal c/f 100100 83900 183500 199700 283600 283600 A/E payables a/c Debit in $ Date Particulars 01-Aug by Bal b/t 01-Aug by office supplies Particulars Credit in $ Date 09-Aug to office supplies 23-Aug to cash 31-Aug to bal c/f 400 21000 13750 3150 10000 24150 24150 Office supplies a/c Debit in $ Date Credit in $ Date Particulars Particulars 01-Aug To bal b/f 01-Aug to a/c payable 09-Aug by a/c payable 31-Aug by bal c/f 2800 400 3150 5550 5950 5950

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