Equity Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on July 31, 2008, is shown at the top of the following page.

The following business transactions were completed by Equity Realty during August 2008:

Aug. 1. Purchased office supplies on account, $1,500.

2. Paid rent on office for month, $2,500.

3. Received cash from clients on account, $28,720.

5. Paid annual insurance premiums, $3,600.

Aug. 9. Returned a portion of the office supplies purchased on August 1, receiving full credit for their cost, $250.
17. Paid advertising expense, $3,450.
23. Paid creditors on account, $2,670.
29. Paid miscellaneous expenses, $500.
30. Paid automobile expense (including rental charges for an automobile), $1,500.
31. Discovered an error in computing a commission; received cash from the salesperson for the overpayment, $1,000.
31. Paid salaries and commissions for the month, $17,400.
31. Recorded revenue earned and billed to clients during the month, $51,900.
31. Purchased land for a future building site for $75,000, paying $10,000 in cash and giving a note payable for the remainder.
31. Withdrew cash for personal use, $5,000.
31. Rented land purchased on August 31 to a local university for use as a parking lot during football season (September, October, and November); received advance payment of $2,000.

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 (

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Equity Realty Unadjusted Trial Balance July 31, 2008 Debit Balances Balances Credit 35,750 4,500 21 Accounts Payable . . 6,200 23 Notes Payable 31,550 220,000 51 52 Rent Expense... Salary and Commission Expense . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 140,000 ....7,500 54 Automobile Expense ...6,400 1,100 257,750 257,750