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