Journal Entries and Trial Balance

On January 1, 2014, Faith Schultz established Heavenly Realty, which completed the following transactions during the month:

Faith Schultz transferred cash from a personal bank account to an account to be used for the business in exchange for capital stock, $25,000.

a)Paid rent on office and equipment for the month, $4,510.

b)Purchased supplies on account, $1,330.

c)Paid creditor on account, $490.

d)Earned sales commissions, receiving cash, $20,500.

e)Paid automobile expenses (including rental charge) for month, $1,250, and miscellaneous expenses, $840.

f)Paid office salaries, $2,620.

g)Determined that the cost of supplies used was $740.

h)Paid dividends, $1,210.

Prepare T accounts, using the account titles in (1). Post the journal entries to these T accounts, selecting the appropriate letter to the left of each amount to identify the transactions. Determine the account balances of the T accounts (when required), after all posting is complete. Accounts containing a single entry only (such as Capital Stock) do not need a balance.

Cash
Selecta.b.c.d.h.i.Correct 1 of Item 2		Selecta.b.c.e.h.Correct 3 of Item 2
Selectb.c.d.e.f.h.i.Correct 5 of Item 2		Selecta.c.d.e.h.Correct 7 of Item 2
		Selecta.c.e.f.h.Correct 9 of Item 2
		Selecta.c.e.g.h.Correct 11 of Item 2
		Selecta.c.e.h.i.Correct 13 of Item 2
Bal.

Supplies
Selecta.b.c.d.e.f.g.h.i.Correct 16 of Item 2		Selecta.b.c.d.e.f.g.h.i.Correct 18 of Item 2
Bal.

Accounts Payable
Selecta.b.c.d.e.f.g.h.i.Correct 21 of Item 2		Selecta.b.c.d.e.f.g.h.i.Correct 23 of Item 2
		Bal.

Capital Stock
		Selecta.b.c.d.e.f.g.h.i.Correct 26 of Item 2

Dividends
Selecta.b.c.d.e.f.g.h.i.Correct 28 of Item 2

Sales Commissions
		Selecta.b.c.d.e.f.g.h.i.Correct 30 of Item 2

Rent Expense
Selecta.b.c.d.e.f.g.h.i.Correct 32 of Item 2

Office Salaries Expense
Selecta.b.c.d.e.f.g.h.i.Correct 34 of Item 2

Automobile Expense
Selecta.b.c.d.e.f.g.h.i.Correct 36 of Item 2

Supplies Expense
Selecta.b.c.d.e.f.g.h.i.Correct 38 of Item 2

Miscellaneous Expense
Selecta.b.c.d.e.f.g.h.i.Correct 40 of Item 2