Carol Blake completed these transactions during a short period:

a. Opened a real estate agency by investing the following assets at their fair values: cash, \(\$ 4,000\); office equipment, \(\$ 4,500\); automobile, \(\$ 8,000\); land, \(\$ 37,500\); and building, \(\$ 112,500\). The business should also assume responsibility for a \(\$ 90,000\) promissory note that was given to the bank to finance the purchase of the land and building.

b. Purchased office supplies, \(\$ 90\), and additional office equipment, \(\$ 525\), on credit.

c. Collected a \(\$ 9,500\) commission from the sale of property for a client.

d. Purchased additional office equipment on credit, \(\$ 630\).

e. Paid for advertising that had appeared in the local paper, \(\$ 190\).

f. Traded the agency's automobile and \(\$ 7,000\) in cash for a new automobile.

g. Paid the office secretary's salary, \(\$ 785\).

\(h\). Paid for the supplies and equipment purchased in transaction (b).

i. Completed a real estate appraisal for a client on credit, \(\$ 265\).

\(j\). Collected a \(\$ 3,750\) commission from the sale of a building lot for a client.

\(k\). The client of transaction (i) paid \(\$ 115\) of the amount owed.

l. Paid the secretary's salary, \(\$ 785\).

\(m\). Paid \(\$ 175\) for newspaper advertising that had appeared.

n. Carol Blake withdrew \(\$ 2,500\) from the business for personal use.

\section*{Required}

1. Open the following T-accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Automobile; Land; Building; Accounts Payable; Notes Payable; Carol Blake, Capital; Carol Blake, Withdrawals; Commissions Earned; Appraisal Fees Earned; Office Salaries Expense; and Advertising Expense.

2. Record the transactions by entering debits and credits directly in the accounts. Use the transaction letters to identify the amounts in the accounts.

3. Determine the balance of each account in the ledger and prepare a trial balance using the current date.