Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2018, follows: Elite Realty UNADJUSTED TRIAL BALANCE March 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 25,400.00 2 Accounts Receivable 59,500.00 3 Prepaid Insurance 2.900,00 4 Office Supplies 2,300.00 5 Accounts Payable 12,600.00 6. Common Stock 10,000.00 7 Retained Earnings 36,300.00 & Dividends 2,200.00 9 Fees Earned 235,800.00 10 Salary and Commission Expense 146,300.00 11 Rent Expense 31,000.00 12 Advertising Expense 16,600,00 15 Automobile Expense 4,500.00 14 Miscellaneous Expense 4,000.00 15 Totals 294,700.00 294,700.00 The following business transactions were completed by Elite Realty during April 2018. Enter the transactions through the 23rd on Page 18 of the two-column journal: Apr 1 Paid rent on office for month, $5,000 2 Purchased office supplies on account, $2.400 5 Paid insurance premiums, S5,000 10 Received cash from clients on account, $52,000. , . 15 Purchased land for a future building site for $229,500 paying $30,000 in cash and giving a note 15 Purchased land for a future building site for $229,500, paying $30,000 in cash and giving a note payable for the remainder. 17 Paid creditors on account, $6,050 20 Returned a portion of the office supplies purchased on April 2, receiving full credit for their cost, $350. 23 Paid advertising expense, $4,400. Enter the following transactions on Page 19 of the two-column journal: Apr. 27 Discovered an error in computing a commission; received cash from the salesperson for the overpayment, $2,400 28 Paid automobile expense (including rental charges for an automobile), $1,300. , 29 Paid miscellaneous expenses, $1,200 30 Recorded revenue earned and billed to clients during the month, $55,000 30 Paid salaries and commissions for the month, $11.900. 30 Paid dividends, $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 advance payment of $10,200. Required: 1. Record the April 1, 2018, balance of each account in the appropriate balance column of a four-column account, type Balance in the item section, and select a check mark in the Posting Reference column. 2. Journalize the transactions for April in a two-column journal beginning on Page 18. Refer to the Chart of Accounts for exact wording of account titles. Insert the appropriate posting references in both the journal and the ledger as each item is posted. 3. Post to the ledger, extending the account balance to the appropriate balance column after each posting. Post in chronological order. For transactions occurring on the same day, post in the order presented in the instructions. Insert the appropriate posting references in both the journal and the ledger as each item is posted. 4. Prepare an unadjusted trial balance of the ledger as of April 30, 2018 5. Assume that the April 30 transaction for salaries and commissions should have been $19, 100. (a) Why did the unadjusted trial balance in (4) balance? (b) Journalize the correcting entry on April 30. Use page 20. (Note: You will not be required to post this entry to the ledger at this time.) (c) Is this error a transposition or slide? CHART OF ACCOUNTS Elite Realty General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 13 Prepaid Insurance EXPENSES 14 Office Supplies 51 Salary and Commission Expense 16 Land 52 Rent Expense 53 Advertising Expense LIABILITIES 54 Automobile Expense 21 Accounts Payable 59 Miscellaneous Expense 22 Unearned Rent EQUITY 23 Notes Payable 31 Common Stock 32 Retained Earnings 33 Dividends 2. Journalize the transactions for April in a two-column journal beginning on Page 18. Refer to the Chart of Accounts for exact wording of account titles. Insert the appropriate references in both the journal and the ledger as each item is posted. PAGE 18 PAGE 19 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7 10 11 Dividends 12 Fees Earned 13 Salary and Commission Expense 14 Rent Expense 15 Advertising Expense 16 Automobile Expense 17 Miscellaneous Expense 18 Totals 2. Journalize the transactions for April in a two-column journal beginning on Page 18. Refer to the Chart of Accounts for exact wording of account titles. Insert the appropriate references in both the journal and the ledger as each item is posted. PAGE 18 PAGE 19 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1. Record the April 1, 2018, balance of each account in the appropriate balance column of a four-column account, type Balance in the item section, and select a check mark in the Posting Reference column. 3. Post to the ledger, extending the account balance to the appropriate balance column after each posting. Post in chronological order. For transactions occurring on the same day, post in the order presented in the instructions. Insert the appropriate posting references in both the journal and the ledger as each item is posted. LEDGER Account: Cash Account No. 11 Account: Accounts Receivable Account No. 12 Account No. 13 Account: Prepaid Insurance Account: Office Supplies Account No. 14 Account: Land Account No. 16 Account: Accounts Payable Account No. 21 Account: Unearned Rent Account No. 22 Account: Notes Payable Account No. 23 Account: Common Stock Account No. 31 Account: Retained Earnings Account No. 32 Account: Dividends Account No. 33 Account: Fees Earned Account No. 41 Account No. 51 Account No. 52 Account: Salary and Commission Expense Account: Rent Expense Account: Advertising Expense Account: Automobile Expense Account: Miscellaneous Expense Account No. 53 Account No. 54 Account No. 59 4. Prepare an unadjusted trial balance of the ledger as of April 30, 2018. Elite Realty UNADJUSTED TRIAL BALANCE April 30, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Prepaid Insurance 4 Office Supplies 5 Land 6 Accounts Payable 7 Unearned Rent 8 Notes Payable 9 Common Stock 10 Retained Earnings 11 Dividends 12 Fees Earned 13 Salary and Commission Expense 14 Rent Expense 15 Advertising Expense 16 Automobile Expense 17 Miscellaneous Expense 18 Totals 0 5. Assume that the April 30 transaction for salaries and commissions should have been $19, 100. (a) Why did the unadjusted trial balance in (4) balance? (b) Journalize the correcting entry on April 30. Use page 20. (Note: You will not be required to post this entry to the ledger at this time.) PAGE 20 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 (c) Is this error a transposition or slide