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

An unadjusted trial balance for Elite Realty is shown. A three-line heading is set centered at the top of the trial balance. The first line lists the com-pany name, Elite Realty. The second line lists the type of financial statement, Unadjusted Trial Bal-ance. The third line lists the date, March 31, 20Y3. The two amount columns are labeled Debit Bal-ances and Credit Balances. The statement also shows a column for account numbers labeled Ac-count Number. The trial balance shows the follow-ing accounts and amounts: Cash, 11, debit balance of 26,300; Accounts Receivable, 12, debit balance of 61,500; Prepaid Insurance, 13, debit balance of 3,000; Office Supplies, 14, debit balance of 1,800; Land, 16, no debit balance; Accounts Payable, 21, credit balance of 14,000; Unearned Rent, 22, no credit balance; Notes Payable, 23, no credit bal-ance; Alberto Harnish, Capital, 31, credit balance of 46,000; Alberto Harnish, Drawing, 32, debit bal-ance of 2,000; Fees Earned, 41, credit balance of 240,000; Salary and Commission Expense, 51, debit balance of 148,200; Rent Expense, 52, debit balance of 30,000; Advertising Expense, 53, debit balance of 17,800; Automobile Expense, 54, debit balance of 5,500; and Miscellaneous Expense, 59, debit balance of 3,900. A single rule appears below 3,900 in the Debit Balances column and on this line in the Credit Balances column as well. The totals of the Debit Balances and Credit Balances columns are 300,000. A double rule appears below this total in both columns.

he following business transactions were completed by Elite Realty during April 20Y3:

Apr.1.Paid rent on office for month, $6,500. 2.Purchased office supplies on account, $2,300. 5.Paid annual insurance premiums, $6,000. 10.Received cash from clients on account, $52,300. 15.Purchased land for a future building site for $200,000, paying $30,000 in cash and giving a note payable for the remainder. 17.Paid creditors on account, $6,450. 20.Returned a portion of the office supplies purchased on April 2, receiving full credit for their cost, $325. 23.Paid advertising expense, $4,300.

Enter the following transactions on Page 19 of the two-column journal:

27.Discovered an error in computing a commission; received cash from the salesperson for the overpayment, $2,500. 28.Paid automobile expense (including rental charges for an automobile), $1,500. 29.Paid miscellaneous expenses, $1,400. 30.Recorded revenue earned and billed to clients during the month, $57,000. 30.Paid salaries and commissions for the month, $11,900. 30.Withdrew cash for personal use, $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 $10,000.

INSTRUCTIONS

Record the April 1, 20Y3, 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 () in the Posting Reference column.

Journalize the transactions for April in a two-column journal beginning on Page 18. Journal entry explanations may be omitted.

Post to the ledger, extending the account balance to the appropriate balance column after each posting.

Prepare an unadjusted trial balance of the ledger as of April 30, 20Y3.

SHOW ANSWER 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.