Journal Entries and Trial Balance

Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2019, follows:

Elite Realty
Unadjusted Trial Balance
March 31, 2019
Account No.		Debit Balances	Credit Balances
11	Cash	9,880
12	Accounts Receivable	23,020
13	Prepaid Insurance	1,120
14	Office Supplies	670
16	Land
21	Accounts Payable		6,510
22	Unearned Rent
23	Notes Payable
31	Lester Wagner, Capital		20,200
32	Lester Wagner, Drawing	790
41	Fees Earned		112,290
51	Salary and Commission Expense	82,180
52	Rent Expense	11,230
53	Advertising Expense	6,630
54	Automobile Expense	2,020
59	Miscellaneous Expense	1,460
		139,000	139,000

The following business transactions were completed by Elite Realty during April 2019:

Apr. 1.	Paid rent on office for month, $3,730.
2.	Purchased office supplies on account, $970.
5.	Paid insurance premiums, $2,690.
10.	Received cash from clients on account, $18,650.
15.	Purchased land for a future building site for $67,100, paying $7,400 in cash
	and giving a note payable for the remainder.
17.	Paid creditors on account, $3,360.
20.	Returned a portion of the office supplies purchased on April 2, receiving
	full credit for their cost, $150.
23.	Paid advertising expense, $1,490.
Enter the following transactions on Page 19 of the two-column journal.
27.	Discovered an error in computing a commission; received cash from the sales person
	for the overpayment, $750.
28.	Paid automobile expense (including rental charges for an automobile), $1,120.
29.	Paid miscellaneous expenses, $340.
30.	Recorded revenue earned and billed to clients during the month, $22,380.
30.	Paid salaries and commissions for the month, $7,530.
30.	Withdrew cash for personal use, $750.
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 $2,240.

Required:

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

4. Using the balances from the spreadsheet, prepare an unadjusted trial balance of the ledger as of April 30, 2019. If an amount box does not require an entry, leave it blank.

Elite Realty Unadjusted Trial Balance April 30, 2019
	Debit Balances	Credit Balances
Cash
Accounts Receivable
Prepaid Insurance
Office Supplies
Land
Accounts Payable
Unearned Rent
Notes Payable
Lester Wagner, Capital
Lester Wagner, Drawing
Fees Earned
Salary and Commission Expense
Rent Expense
Advertising Expense
Automobile Expense
Miscellaneous Expense

5a. Assume that the April 30 transaction for salaries and commissions should have been $5,730. As a result, the unadjusted trial balance in (4) would not be impacted at all.

5b. Assume that the April 30 transaction for salaries and commissions should have been $5,730. Journalize the correcting entry. If an amount box does not require an entry, leave it blank.

General Journal				PAGE 19
Date	Description	Post. Ref.	Debit	Credit
2019
Apr. 30	Cash
	Lester Wagner, Drawing

5c. Assume that the April 30 transaction for salaries and commissions should have been $5,730. Is this error a transposition or slide?