transactions were completed by Elite Realry during Apra eaior month 6.00 apter 2

Question

transactions were completed by Elite Realry during Apra eaior month 6.00 apter 2 Analyzing Transactions business transactions were The following Apr. 1 . Paid rent on office for month, $6,500. Purchased office supplies on account, $2,300. 5. Paid insurance premiums, $6,000. 10. Received cash from clients on a 15. Purchased land for a ccount, $52,300. in cash future building a note payable for the remainder. epaaterc buling site for $200,000, paying s30,000 in ca and giving Paid creditors on account, $6,4s0. Returned a portion of the office supplies purchased on April 2, receiving ful 17. credit for their cost, $325 23. Paid advertising expense, $4,300. Page 19 of the two-column journal Enter the following transactions on 27. Discovered an error in computing a commission; received cash from the sales person for the overpayment, $2,500. 28. Paid automobile expense (including rental charges for an automobile), $1,500 29. Paid miscellaneous expenses, $1,400. 30. Recorded revenue earned and billed to clients during the month, $57,000. 30. Paid salaries and commissions for the month, $11,900. 30. Withdrew cash for personal use, $4,000. 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 ad. vance payment of $10,000. Instructions 1. Record the April 1, 2019, balance of each account in the appropriate balance column 2. Journalize the transactions for April in a two-column journal beginning on Page 18. 3. Post to the ledger, extending the account balance to the appropriate balance column 5. Assume that the April 30 transaction for salaries and commissions should have been of a four-column account, write Balance in the item section, and place a check mark (in the Posting Reference column. Journal entry explanations may be omitted after each posting. 4. Prepare an unadjusted trial balance of the ledger as of April 30, 2019. $19,100. (a) Why did the unadjusted trial balance in (4) balance? (b) Journalize the correcting entry. (c) Is this error a transposition or slide?

Explanation / Answer

1) Journal entries in the books of realty Date Particulars Amount ($) Amount ($) Apr. 1 Rent expenses A/c Dr 6,500.00         To Cash A/c 6,500.00 2 Office supplies A/c Dr 2,300.00         To Accounts payable A/c 2,300.00 5 Prepaid insurance Ac dr 6,000.00     To Cash A/c 6,000.00 10 Cash A/c Dr 52,300.00     To Accounts receivable A/c 52,300.00 15 Land A/c Dr 2,00,000.00     To Cash A/c 30,000.00     To Notes payable A/c 1,70,000.00 17 Accounts payable A/c Dr 6,450.00     To Cash A/c 6,450.00 20 Accounts Payable A/c Dr 325.00     To office supplies A/c 325.00 23 Advertisement expenses A/c Dr 4,300.00     Cash A/c 4,300.00 27 Cash A/c Dr 2,500.00     To Salary and commission expenses A/c 2,500.00 28 Auto mobile expenses A/c Dr 1,500.00     To Cash A/c 1,500.00 29 Misc. Expenses A/c Dr 1,400.00     To Cash A/c 1,400.00 30 Accounts Receivable A/c Dr 57,000.00     To fees earned A/c 57,000.00 30 Salary and commission expenses A/c Dr 11,900.00     To Cash A/c 11,900.00 30 Dividends A/c Dr 4,000.00     To Cash A/c 4,000.00 30 Cash A/c Dr 10,000.00     To Unearned Rent A/c 10,000.00 30 Salary and commsion expenses A/c Dr 7,200.00     To Cash A/c 7,200.00 2) Posting Rent expense A/c Date Particulars Amount($) Date Particulars Amount($) To Balance b/d 30000 To Cash A/c 6,500.00 By balance c/d ( P & L A/c) 36,500.00 36,500.00 36,500.00 Cash A/c Date Particulars Amount($) Date Particulars Amount($) To Balance b/d 26,300.00 By Rent expnses A/c 6,500.00 To Accounts receivable 52,300.00 By insurance expenses 6,000.00 To Salaries and commission expenses 2,500.00 By land 30,000.00 To unearned rent 10,000.00 BY Accounts payable 6,450.00 To Salaries and commission expenses 7,200.00 BY advertisement expenses 4,300.00 By Auto mobile expenses A/c 1,500.00 By Misc. Expenses 1,400.00 By Salaries and commision exp 11,900.00 BY Divindend 4,000.00 By balance c/d 26,250.00 98,300.00 98,300.00 Office supplies A/c Date Particulars Amount($) Date Particulars Amount($) To balance b/d 1800 By Accounts payable 325 To Accounts payable A/c 2,300.00 By balance c/d (P & L ) 3,775.00 4,100.00 3,775.00 Accounts payable A/c Date Particulars Amount($) Date Particulars Amount($) To Balance c/d 9,525.00 By balance b/d 14,000.00 To Cashh 6,450.00 By office supplies 2,300.00 To Office supplies 325.00 16,300.00 16,300.00 Prepaid insurance a/c Date Particulars Amount($) Date Particulars Amount($) To balance b/d 3000 To Cash A/c 6,000.00 By balnce c/d 9,000.00 9,000.00 9,000.00 Accounts receivable A/c Date Particulars Amount($) Date Particulars Amount($) To balance b/d 61,500.00 By Cash 52,300.00 To fees earned 57,000.00 By balance c/d 66,200.00 1,18,500.00 1,18,500.00 Land A/c Date Particulars Amount($) Date Particulars Amount($) To Cash 30,000.00 To Notes payable 1,70,000.00 By balance c/d 2,00,000.00 2,00,000.00 2,00,000.00 Notes payable A/c Date Particulars Amount($) Date Particulars Amount($) To balance c/d 1,70,000.00 By Land 1,70,000.00 1,70,000.00 1,70,000.00 Advertisement expenses A/c Date Particulars Amount($) Date Particulars Amount($) To balance b/d 17,800.00 To Cash 4,300.00 By balance c/d (p&l) 22,100.00 22,100.00 22,100.00 Salareis and Commision expenses A/c Date Particulars Amount($) Date Particulars Amount($) To balance b/d 1,48,200.00 By balance c/d 1,50,400.00 To Cash A/c 11,900.00 BY cash 2,500.00 By cash A/c 7,200.00 1,60,100.00 1,60,100.00 Auto mobile expenses A/c Date Particulars Amount($) Date Particulars Amount($) To balance b/d 5,500.00 By balance c/d 7,000.00 To Cash A/c 1,500.00 7,000.00 7,000.00 Misc expenses A/c Date Particulars Amount($) Date Particulars Amount($) To balance b/d 3,900.00 By balance c/d 5,300.00 To Cash 1,400.00 5,300.00 5,300.00 Dividends A/c Date Particulars Amount($) Date Particulars Amount($) To Cash 4,000.00 To balance b/d 2,000.00 By balance c/d 6,000.00 6,000.00 6,000.00 Unearned Rent A/c Date Particulars Amount($) Date Particulars Amount($) To balance c/d 10,000.00 By Cash 10,000.00 10,000.00 10,000.00 Fee earned Date Particulars Amount($) Date Particulars Amount($) To balance c/d 2,97,000.00 By balance b/d 2,40,000.00 By accounts receivable 57,000.00 2,97,000.00 2,97,000.00 3) Adjusted trial balance as on 30th April Account title Debit Credit Cash 26,250.00 Accounts receivable 66,200.00 Prepaid insurance 9,000.00 Office supplies 3,775.00 Land 2,00,000.00 Accounts payanble 9,525.00 Unearned rent 10,000.00 Notes payable 1,70,000.00 Common stock 10,000.00 Retained earnings 36,000.00 Dividends 6,000.00 Fees earned 2,97,000.00 Salary and commission expenses 1,50,400.00 Rent expense 36,500.00 Advertisesment expenes 22,100.00 Automobile expense 7,000.00 Misc expense 5,300.00 5,32,525.00 5,32,525.00

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