Instructions On January 1, 2045, Fahad Ali established Mountain Top Realty, which completed the following transactions during the month: Jan. 1 Fahad Ali transferred cash from a personal bank account to an account to be used for the business, $30,000 2 Paid rent on office and equipment for the month, $2,450. Purchased supplies on account, $2,200. 3 4 Paid creditor on account, $850. 5 6 Earned fees, receiving cash, $14.940. Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $470. 7 Paid office salaries, $2,000. 8 Determined that the cost of supplies used was $1,100. Withdrew cash for personal use, $3,200. 9 Required: 1. Journalize entries for transactions Jan. 1 through 9. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 2. Post the journal entries to the T accounts, selecting the appropriate date to the left of each amount to identify the transactions. Determine the account balances after all posting is complete. Accounts containing only a single entry do not need a balance. Determine the correct ending balance. The ending balance label is provided on the left side of the T account even when the ending balance is a credit. The unused cell on the balance line should be left blank. 3. Prepare an unadjusted trial balance as of January 31, 2045 4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for January 5. Determine the increase or decrease in owner's equity for January Chart of Accounts x CHART OF ACCOUNTS Mountain Top Realty General Ledger ASSETS REVENUE 41 Fees Earned 11 Cash 12 Supplies LIABILITIES 21 Accounts Payable EXPENSES 51 Rent Expense 52 Office Salaries Expense 53 Automobile Expense EQUITY 54 Supplies Expense 55 Miscellaneous Expense 31 Fahad Ali, Capital 32 Fahad Ali, Drawing Journal 1. Journalize entries for transactions Jan. 1 through 9. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered PAGE 1 JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT ACCOUNTING FOLLATION . ASSETS LIABILITIES EQUITY 1 2 3 5 6 8 9 10 11 12 13 14 15 16 17 18 19 T Accounts x 2. Post the journal entries to the T accounts, selecting the appropriate date to the left of each amount to identify the transactions. Determine the account balances after all posting is complete. Accounts containing only a single entry do not need a balance. Determine the correct ending balance. The ending balance label is provided on the left side of the T account even when the ending balance is a credit. The unused cell on the balance line should be left blank. Cash Bal. Supplies Bal. Accounts Payable Bal. Fahad Ali, Capital Fahad Ali, Drawing Fees Earned Rent Expense Office Salaries Expense Automobile Expense Supplies Expense Miscellaneous Expense Unadjusted Trial Balance 3. Prepare an unadjusted trial balance as of January 31, 2045. Mountain Top Realty UNADJUSTED TRIAL BALANCE January 31, 2045 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Supplies 3 Accounts Payable 4 Fahad Ali, Capital 5 Fahad Ali, Drawing 6 Fees Earned 7 Rent Expense 8 Office Salaries Expense 9 Automobile Expense 10 Supplies Expense 11 Miscellaneous Expense 12 Totals Final Questions 4. Determine the following: a. Amount of total revenue recorded in the ledger. $ b. Amount of total expenses recorded in the ledger. $ c. Amount of net income for January. $ 5. Determine the increase or decrease in owner's equity for January
