Instructions On October 1, 20Y6, Jay Crowley established Affordable Realty, which completed the following transactions during the month: Oct. 1 Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $31,500. 2 Paid rent on office and equipment for the month, $2,450. Purchased supplies on account, $2,200. 3 4 Paid creditor on account, $860. 5 Earned sales commissions, receiving cash, $16,430. 6 Paid automobile expenses (including rental charge) for month, $1,650, and miscellaneous expenses, $690. 7 Paid office salaries, $2,200. 8 Determined that the cost of supplies used was $1,100. 9 Paid dividends, $3,600. 1. Journalize entries for transactions Oct. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles. 2. Post the journal entries to the Taccounts, 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. 3. Prepare an unadjusted trial balance as of October 31, 20Y6. 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 October 5. Determine the increase or decrease in retained earnings for October. Chart of Accounts CHART OF ACCOUNTS Affordable Realty General Ledger ASSETS REVENUE 11 Cash 41 Sales Commissions 12 Supplies EXPENSES 51 Rent Expense LIABILITIES 21 Accounts Payable 52 Office Salaries Expense 53 Automobile Expense EQUITY 54 Supplies Expense 55 Miscellaneous Expense 31 Common Stock 33 Dividends Journal 1. Journalize entries for transactions Oct. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles. JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT ACCOUNTINC ASSETS LIABIL 1 2 3 4 5 6 7 8 9 10 11 12 POST. REF. DEBIT CREDIT ACCOUNTING FOLATION ASSETS LIABILITIES EQUITY 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 October. $ 5. Determine the increase or decrease in retained earnings for October. $ Affordable Realty UNADJUSTED TRIAL BALANCE October 31, 2016 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Supplies 3 Accounts Payable 4 Common Stock 5 Dividends 6 Sales Commissions 7 Rent Expense 8 Office Salaries Expense 9 Automobile Expense 10 Supplies Expense 11 Miscellaneous Expense T Accounts 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. Cash Bal. T Accounts Supplies Bal. Accounts Payable Bal. Common Stock
