For the following Accounting Equation, please complete the following:

1. Journals

2. General Ledger

3. Trial Balance

4. Financial Statements

   1. Profit & Loss

   2. Balance Sheet

   Toms Real Estate Company opened its doors in May 2014 in the sunny state of Florida. Tom has

always dreamed of owning a large business and believes Real Estate is the key to his future success. Over the years, he has met with high level teams across the nation and has been mentored by some of the greatest teams around. Tom has found a building to rent, along with multiple talented people to help run his business. In his first month, Tom sold 6 closings for a whopping Gross Income of $30,000.00. Of course at the end of the month, the bank balance was a lot less than he anticipated. Please help Tom figure out his net income and what his company is worth.

• Tom invested $15,000.00 of personal money into his business on May 1st, 2014.

• He used $3,000.00 to purchase Computers & Other Equipment for the business from

  Best Buy.

• Received Commission checks of $9,000.00 on May 7th.

• 10% of Toms Commissions were paid to his Agent, Tim Jones on May 8th.

• His rent, paid on May 15th to Chase Bank was for $650.00. $200.00 of which is a

  refundable security deposit.

• Check 1322, in the amount of $32.00 was written on May 16th for the Internet Bill to

  Century Link.

• Salaries were paid to 1099 Vendors & Support Staff via ADP on May 16th. Payroll Journal

  attached. Employee Withholdings will be paid next month, along with the IRA. Payroll

  Processing Fees were $85.00.

• Employer Payroll Taxes were deducted on May 16th.

• Received Commission checks in the amount of $18,000.00 on May 20th.

• 20% of Toms Commissions were paid to his Agent, Tim Jones on May 21st.

• $2,000.00 worth of Advertising Expenses were spent on May 25th on the Company

  Credit Card. He paid XYZ Marketing Company.

• Received Commission checks in the amount of $3,000.00 on May 27th.

• Tom loaned one of his agents, Tim Jones, $1,500.00 on May 27th.

• A payment of $200.00 was made on the Company Credit Card May 30th.

Possible G/L Categories

Bank Pre-Paid Legal Pre-Paid Insurance Cost of Goods Sold Commission Income Advertising Expense Security Deposit Furnishings & Equipment Computer & Internet Loan Payable Loan Receivable Credit Card Payroll Processing Fees Lead Generation Salary Expense Payroll Taxes Payroll Taxes Payable IRA Payable IRA Match

Rent

Payroll Details Hours and Earnings Taxes Deductions Employer Description. Hours Rate Amount Tax Amguntas Deduction Amount Net Pay Dobilly Amount: . Pay Frequency: Semimonthly Employee: Jessica T T 1099 Misc 79.00 13.00 1,027.00 1,027.00 79.00 1,027.00 Check Date: 05/16/2012 / Direct Deposit / Checking/ $1,027.00 Employee: Russell D 1099 Misc 80.00 15.00 1,200.00 1,236.14 1099 0.00 36.14 reimbursement 80.00 1,236.14 Check Date: 05/16/2012 / Direct Deposit / Checking 1. $1,236.14 Employee: Victoria 1099 Misc 0.00 50.00 50.00 0.00 50.00 Check Date: 05/16/2012/Direct Deposit/Checking/ $50.00 $ Employee: Judith Regular 0.00 1,025.00 FED FIT 98.44 840.96 FED SOCSEC-ER 63.55 0.00 1,025.00 FED SOCSEC 43.05 FED MEDCARE-ER FED 14.86 14.87 MEDCARE 78.41 AZ SIT 27.68 184.04 Check Date: 05/16/2012 / Direct Deposit / Checking // $840.96 Employee: Tracy M M 1099 Misc 0.00 750.00 750.00 0.00 750.00 Check Date: 05/16/2012/Direct Deposit / Checking // $750.00 Employee: Management LLC 1099 Misc 0.00 1.780.00 1,780.00 0.00 1,780.00 Check Date: 05/16/2012/Direct Deposit / Checking/ $1,780.00 Employee: , Nicole L 1099 Misc 0.00 1,750.00 1,750.00 0.00 1,750.00 Check Date: : Direct Deposit / Checking / ! $1,750.00 Employee: Barbara 1099 Misc 0.00 200.00 347.05 1099 0.00 147,05 reimbursement 0.00 347.05 a 1 of 2 Company: Check date: 5/16/2012 - Payroll 1 Pay Period: 05/01/2012 to: 05/15/2012 Date Printed: 05/15/2012 17:30 : Payroll Details Taxes Amount Deductions Deduction Amount Ta Amount Employer ability Not Pay Amount Hours and Earnings DescriptHours Rate Check Date: 05/16/2012/ Check / Employee: Mandalynn Regular 0.00 0.00 175.00 3,500.00 FED FIT 3,500.00 FED SOCSEC FED MEDCARE AZ SIT 603.85 ADP AS SIMPLE RS 147.00 IRA % 50.75 2,383.75 FED SOCSEC-ER - FED MEDCARE-ER FED FUTA AZ SUI-ER 175.00 217.00 50.75 21.00 81.90 139.65 941.25 $2,383.75 370.65 Check Date: 05/16/2012 / Direct Deposit / Checking Employee: Rosanna C Regular 85.50 11.00 85.50 60.30 39.50 13.64 940.50 FED FIT 940.50 FED SOCSEC FED MEDCARE FED MEDCARE Recalc AZ SIT 801.67 FED SOCSEC-ER FED MEDCARE-ER FED FUTA AZ SUI-ER 58.31 13.64 3.57 13.93 89.45 0.00 25.39 138.83 $801.67 Check Date: 05/16/2012/Direct Deposit Pay Frequency Totals: Semimonthly Regular 85.50 1099 Misc 159.00 1099 0.00 reimbursement 244.50 $175.00 $762.59 ADP RS SIMPLE $229.55 IRA % $79.26 $5,465.50 FED FIT $6,757.00 FED SOCSEC $183.19 FED MEDCARE $12,405.69 FED MEDCARE Recalc AZ SIT $10,966.57 FED SOCSEC-ER FED MEDCAREER FED FUTA AZ SUI-ER $338.86 $79.25 $24.57 $95.83 $175,00 $0.00 $192.72 $1,264.12 538.5) $175,00 Company Totals: Regular 1099 Misc 1099 reimbursement 85.50 159.00 0.00 $762.59 ADP RS SIMPLE $229.55 IRA % $79.26 $10,966.57 FED SOCSEC-ER FED MEDCARE-ER FED FUTA A7 SIER " $5,465.50 FED FIT $6,757.00 FED SOCSEC $183.19 FED MEDCARE $12,405.69 FED MEDCARE Recalc AZ SIT $175.00 $338.86 $79.25 $24.57 $95.83 244.50 $0.00 $192.72 $1,264.12 538.51 2 of 2 Date Printed: 05/15/2012 17:30 Company: Check date: 5/16/2012 - Payroll 1 Pay Period: 05/01/2012 to: 05/15/2012 Payroll Details Hours and Earnings Taxes Deductions Employer Description. Hours Rate Amount Tax Amguntas Deduction Amount Net Pay Dobilly Amount: . Pay Frequency: Semimonthly Employee: Jessica T T 1099 Misc 79.00 13.00 1,027.00 1,027.00 79.00 1,027.00 Check Date: 05/16/2012 / Direct Deposit / Checking/ $1,027.00 Employee: Russell D 1099 Misc 80.00 15.00 1,200.00 1,236.14 1099 0.00 36.14 reimbursement 80.00 1,236.14 Check Date: 05/16/2012 / Direct Deposit / Checking 1. $1,236.14 Employee: Victoria 1099 Misc 0.00 50.00 50.00 0.00 50.00 Check Date: 05/16/2012/Direct Deposit/Checking/ $50.00 $ Employee: Judith Regular 0.00 1,025.00 FED FIT 98.44 840.96 FED SOCSEC-ER 63.55 0.00 1,025.00 FED SOCSEC 43.05 FED MEDCARE-ER FED 14.86 14.87 MEDCARE 78.41 AZ SIT 27.68 184.04 Check Date: 05/16/2012 / Direct Deposit / Checking // $840.96 Employee: Tracy M M 1099 Misc 0.00 750.00 750.00 0.00 750.00 Check Date: 05/16/2012/Direct Deposit / Checking // $750.00 Employee: Management LLC 1099 Misc 0.00 1.780.00 1,780.00 0.00 1,780.00 Check Date: 05/16/2012/Direct Deposit / Checking/ $1,780.00 Employee: , Nicole L 1099 Misc 0.00 1,750.00 1,750.00 0.00 1,750.00 Check Date: : Direct Deposit / Checking / ! $1,750.00 Employee: Barbara 1099 Misc 0.00 200.00 347.05 1099 0.00 147,05 reimbursement 0.00 347.05 a 1 of 2 Company: Check date: 5/16/2012 - Payroll 1 Pay Period: 05/01/2012 to: 05/15/2012 Date Printed: 05/15/2012 17:30 : Payroll Details Taxes Amount Deductions Deduction Amount Ta Amount Employer ability Not Pay Amount Hours and Earnings DescriptHours Rate Check Date: 05/16/2012/ Check / Employee: Mandalynn Regular 0.00 0.00 175.00 3,500.00 FED FIT 3,500.00 FED SOCSEC FED MEDCARE AZ SIT 603.85 ADP AS SIMPLE RS 147.00 IRA % 50.75 2,383.75 FED SOCSEC-ER - FED MEDCARE-ER FED FUTA AZ SUI-ER 175.00 217.00 50.75 21.00 81.90 139.65 941.25 $2,383.75 370.65 Check Date: 05/16/2012 / Direct Deposit / Checking Employee: Rosanna C Regular 85.50 11.00 85.50 60.30 39.50 13.64 940.50 FED FIT 940.50 FED SOCSEC FED MEDCARE FED MEDCARE Recalc AZ SIT 801.67 FED SOCSEC-ER FED MEDCARE-ER FED FUTA AZ SUI-ER 58.31 13.64 3.57 13.93 89.45 0.00 25.39 138.83 $801.67 Check Date: 05/16/2012/Direct Deposit Pay Frequency Totals: Semimonthly Regular 85.50 1099 Misc 159.00 1099 0.00 reimbursement 244.50 $175.00 $762.59 ADP RS SIMPLE $229.55 IRA % $79.26 $5,465.50 FED FIT $6,757.00 FED SOCSEC $183.19 FED MEDCARE $12,405.69 FED MEDCARE Recalc AZ SIT $10,966.57 FED SOCSEC-ER FED MEDCAREER FED FUTA AZ SUI-ER $338.86 $79.25 $24.57 $95.83 $175,00 $0.00 $192.72 $1,264.12 538.5) $175,00 Company Totals: Regular 1099 Misc 1099 reimbursement 85.50 159.00 0.00 $762.59 ADP RS SIMPLE $229.55 IRA % $79.26 $10,966.57 FED SOCSEC-ER FED MEDCARE-ER FED FUTA A7 SIER " $5,465.50 FED FIT $6,757.00 FED SOCSEC $183.19 FED MEDCARE $12,405.69 FED MEDCARE Recalc AZ SIT $175.00 $338.86 $79.25 $24.57 $95.83 244.50 $0.00 $192.72 $1,264.12 538.51 2 of 2 Date Printed: 05/15/2012 17:30 Company: Check date: 5/16/2012 - Payroll 1 Pay Period: 05/01/2012 to: 05/15/2012