ournal Entries and Trial Balance On October 1, 2018, Jay Crowley established Aff

Question

ournal Entries and Trial Balance On October 1, 2018, Jay Crowley established Affordable Realty, which completed the following transactions during the month a. Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for Common Stock, $19,000 b. Paid rent on office and equipment for the month, $3,510 c. Purchased supplies on account, $1,040 d Paid creditor on account, $380 e. Earned sales commissions, receiving cash, $15,960 f. Paid automobile expenses (including rental charge) for month, $970, and miscellaneous expenses, $650. g. Paid office salaries, $2,040 h. Determined that the cost of supplies used was $570 L Paid dividends, $940 Required 1. oumalize entries for transactions (o) through () (in chronological order), using the following account tities: Cash, Supplies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. Far a compound transaction, if an amount box Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. For a compound transaction, if an amount box does not require an entry, leave it blank Cash 19,000 Common Stock 19,000 b Rent Expense Cash 3510 510 Supplies 194 Accounts Payable ,040 Aceunts Perable Cash 80

Explanation / Answer

Part 2)

The T-Accounts are prepared as below:

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Part 3)

The unadjusted trial balance is prepared as below:

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Part 4)

a)

The amount of total revenue recorded in the ledger is $15,960.

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Part b)

The amount of total expenses recorded in the ledger is $7,740 (3,510 + 2,040+ 970 + 570 + 650).

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Part c)

The amount of net income for October is $8,220 (15,960 - 7,740).

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Part d)

The increase in retained earnings would be $7,280 (8,220 - 940).

Cash a) 19,000 b) 3,510 e) 15,960 d) 380 f) 1,620 g) 2,040 i) 940 Bal. $26,470

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