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Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 20Y3, follows: Elite Realty

Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 20Y3, follows: Elite Realty UNADJUSTED TRIAL BALANCE March 31, 2013 ACCOUNT TITLE DEBIT CREDIT Cash 2 Accounts Receivable Prepaid Insurance 26,000.00 61,900.00 2,500.00 Office Supplies Accounts Payable Common Stock Retained Earnings Dividends 2,300.00 13,400.00 10,000.00 36,300.00 1,500.00 Fees Earned 237,900.00 10 Salary and Commission Expense 148,200.00 11 Rent Expense 30,000.00 12 Advertising Expense 16,700.00 13 Automobile Expense 4,400.00 14 Miscellaneous Expense 4,100.00 15 Totals 297,600.00 297,600.00 The following business transactions were completed by Elite Realty during April 20Y3. Enter the transactions through the 23rd on Page 18 of the two-column journal Apr 1 Paid rent on office for month, $6,000, 2 Purchased office supplies on account, $2,200 8 Paid insurance premiums, $6,200 10 Received cash from clients on account, $52,100 15 15 17 20 23 Purchased land for a future building site for $184,000, paying $29,000 in cash and giving a note payable for the remainder. Paid creditors on account, $6,100 Returned a portion of the office supplies purchased on April 2, receiving full credit for their cost. $370. Paid advertising expense, $4,200 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. $2,700 28 Paid automobile expense (including rental charges for an automobile), $1,700. 29 Paid miscellaneous expenses, $1,400 30 Recorded revenue earned and billed to clients during the month, $56,000 30 888 30 Paid salaries and commissions for the month, $14,700 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 $11,000 Required: 1. Record the April 1, 2013, 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, 2013. 5. Assume that the April 30 transaction for salaries and commissions should have been $17,400. (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 CHART OF ACCOUNTS Elite Realty General Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Prepaid Insurance 14 Office Supplies 16 Land LIABILITIES 21 Accounts Payable 22 Unearned Rent 23 Notes Payable REVENUE 41 Fees Earned EXPENSES 51 Salary and Commission Expense 52 Rent Expense 53 Advertising Expense 54 Automobile Expense 59 Miscellaneous Expense EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends Journal 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 11 JOURNAL DATE DESCRIPTION PAGE 18 MOC 19 ACCOUNTING EQUATION POST REF DENT CREDIT ASSETS LIABILITIES EQUITY DATE DESCRIPTION JOURNAL PAGE 18 PAGE 19 ACCOUNTING EQUATION POST REF DENT CREDIT ASSETS LIABILITIES EQUITY DESCRIPTION DATE PAGE 18 PAGE 19 JOURNAL ACCOUNTING EQUATION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1. Record the April 1, 2013, 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 Account: Cash Account: Accounts Receivable Account: Prepaid Insurance Account: Office Supplies Account: Land Account: Accounts Payable Account: Unearned Rent Account Notes Payable Account: Common Stock Account: Retained Earnings Account: Dividends Account: Fees Earned Account: Salary and Commission Expense Account: Rent Expense Account: Advertising Expense Account: Automobile Expense Account: Miscellaneous Expense LEDGER Account No. 11 Account No. 12 Account No. 13 Account No. 14 Account No. 16 Account No. 21 Account No. 22 Account No. 23 Account No. 31 Account No. 32 Account No. 33 Account No. 41 Account No. 51 Account No. 52 Account No. 53 Account No. 54 Account No. 59 eBook Unadjusted Trial Balance 4. Prepare an unadjusted trial balance of the ledger as of April 30, 20Y3. Elite Realty UNADJUSTED TRIAL BALANCE April 30, 20Y3 ACCOUNT TITLE 1 Cash 2 Accounts Receivable 3 Prepaid Insurance Office Supplies 5 Land 6 Accounts Payable 7 Unearned Rent Notes Payable 9 Common Stock 10 Retained Earnings 11 Dividends 12 Fees Earned 15 Salary and Commission Expense DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Prepaid Insurance Elite Realty UNADJUSTED TRIAL BALANCE April 30, 20Y3 ACCOUNT TITLE 4 Office Supplies 5 Land 6 Accounts Payable 7 Unearned Rent 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 DEBIT CREDIT Final Questions 5. Assume that the April 30 transaction for salaries and commissions should have been $17,400 (a) Why did the unadjusted trial balance in (4) balance? (b) Journalize the correcting entry on Apre 30 Use page 20. (Note: You will not be required to post this entry to the ledger at this time) Refer to the Chart of Accounts for exact wording of account sites DATE DESCRIPTION (c) is this error a transposition or slide? JOURNAL PAGE 201 ACCOUNTING EQUATION POST HE DEBIT CREDIT ASSETS LIABILITIES EQUITY

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