On October 1, 2010, Cody Doerr established Banyan Realty, which complteted the f
ID: 2366294 • Letter: O
Question
On October 1, 2010, Cody Doerr established Banyan Realty, which complteted the following transactions during the month:a. Cody Doerr transferred cash from a personal bank account to an account to be used for the business in exchange for capital stock, $17,500
b. Purchased supplies on account, $1,000
c. Earned sales commission, receiving cash. $12,250
d. Paid rent on office and equipment for the month, $3,800
e. Paid creditor on account, $600
f. Paid dividend, $3,000
g. Paid automobile expenses ( including rental charge) for the month $1,500, and for miscellaneous expense, $400.
h. Paid office salaries, $,3,100
i. Determined that the cost of supply used was $725.
Instructions:
1) Journalize entries for transactions (a) through (i)…………….
2) Prepare T-accounts using the account titles in.........
3) Prepare an unadjusted trial balance as of October 31, 2010
Explanation / Answer
1) Journalize entries for transactions (a) through (i)
Note : I do not have list of accounts title as you need to use the same as instructed in 2) that reads as follows : 2) Prepare T-accounts using the account titles in.........
a. Cody Doerr transferred cash from a personal bank account to an account to be used for the business in exchange for capital stock, $17,500
Cash $17,500
Common Stock /Cody Capital $17,500
_____________________________________________
b. Purchased supplies on account, $1,000
Supplies Inventory $1,000
Accounts Payable $1,000
______________________________________________
c. Earned sales commission, receiving cash. $12,250
Cash $12,250
Sales Commission $12,250
__________________________________________________
d. Paid rent on office and equipment for the month, $3,800
Rent $3,800
Cash $3,800
___________________________________________________
e. Paid creditor on account, $600
Accounts Payable $600
Cash $600
___________________________________________________
f. Paid dividend, $3,000
Dividend $3,000
Cash $3,000
____________________________________________________
g. Paid automobile expenses ( including rental charge) for the month $1,500, and for miscellaneous expense, $400.
Automobile expense $1,500
Miscellaneous expense $400
Cash $1,900
_______________________________________________
h. Paid office salaries, $,3,100
Salaries expense $3,100
Cash $3,100
_______________________________________________
i. Determined that the cost of supply used was $725.
Supplies expense $725
Supplies Inventory $725
________________________________________________
3) Prepare an unadjusted trial balance as of October 31, 2010
Debit Credit
Common Stock/Cody Capital $17,500
Supplies Inventory(1000-725) $275
Supplies expense $725
Sales Commission $12,250
Rent $3,800
Dividend $3,000
Automobile expense $1,500
Misc. expense $400
Salaries expense $3,100
Accounts Payable $400
Cash 1 $17,350
$30,150 $30,150
1 Cash Account
Debit Credit
Common Stock $17,500
Sales Comm. $12,250
Accounts payable $600
Rent $3,800
Dividend $3,000
Automobile exp. $1,500
Misc. expense $400
Salaries exp. $3,100
Ending balance $17,350
$29,750 $29,750
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