Journal Entries and Trial Balance Valley Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on July 31, 20Y8, is shown below. Valley Realty Unadjusted Trial Balance July 31, 20Y8 w Account No. Debit Balances Credit Balances Cash 11 11,430 Accounts Recevable 12 26,640 Prepaid Insurance 13 1,300 Office Supplies 14 780 16 21 7.540 22 Land Accounts Payable Uneamed Rent Notes Payable Common Stock Retained Earnings Dividends 23 31 10,000 32 16,000 33 910 Cash 11 11,430 Accounts Receivable 12 26,640 Prepaid Insurance 13 1,300 Office Supplies 14 780 Land 16 Accounts Payable 21 7,540 Unearned Rent 22 Notes Payable 23 Common Stock 31 10,000 32 Retained Earnings Dividends 16,000 33 910 Fees Earned 41 129,930 51 97,720 52 12,990 Salary and Commission Expense Rent Expense Advertising Expense Automobile Expense 53 7,670 54 2,340 Miscellaneous Expense 59 1,690 163.470 163,470 The following business transactions were completed by Valley Realty during August 20Y8: Aug. 1. Purchased office supplies on account, $1,110. 2. Pald rent on office for month, $4,260, 3. Received cash from clients on account, $21,310. 5. Paid Insurance premiums, $3,070. 9. Returned a portion of the office supplies purchased on August 1, receiving full credit for their cost, $170. 17. Pald advertising expense, $1,700. 23. Pald creditors on account, $3,840. 29. Paid miscellaneous expense, $380. 30. Pald automobile expense (including rental charges for an automobile), 51,280. Discovered an error in computing a commission during July; received cash from the salesperson for the 31. overpayment, $850. 31. Paid salaries and commissions for the month, $6,440. 31. Recorded revenue earned and billed to clients during the month, $25,570. Purchased land for a future building site for $76,700, paying $8,400 in cash and giving a note payablo 31. for the remainder 31. Paid dividends, $850. Rented land purchased on August 31 to a local university for use as a parking lot during football season 31. (September October, and November) received advance payment of $2,560 Required: Use the attached spreadsheet to complete parts 1 and 3. Click on the Spreadsheet icon to open and save the Excel file to your computer Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem. 1. Record the August 1, 2048 balance of each account in the appropriate balance column of the four-column account. The word Balance has been entered in the item section and a check mark (V) has been placed in the Posting Reference column. 2. Journalize and Insert the Posting References for the transactions for August in a two-column journal beginning on Page 18. Ur a compound transaction, If an amount box does not require an entry, leave it blank. General Journal Page 18 Date Description Post. Ref. Debit Credit 2045 Aug. 1 Office Supplies Accounts Payable Rent Expense Aug. 2 Cash Aug. 3 Cash Accounts Receivable Aug. 5 Prepaid Insurance Cash Aug. 9 Accounts Payable Aug. 9 Accounts Payable Office Supplies Aug. 17 Advertising Expense Cash Aug. 23 Accounts Payable Cash General Journal Page 19 Credit Date Description Post. Ref. Debit 20YS Aug. 29 Miscellaneous Expense Cash Aug. 30 Automobile Expense Cash Aug. 31-Error Cash Salary and Commission Expense Salary and Commission Expense Aug. 31-Salary Cash Aug. 29 Miscellaneous Expense Cash Aug. 30 Automobile Expense Cash Aug. 31-Error Cash Aug. 31-Salary Salary and Commission Expense Salary and Commission Expense Cash Aug. 31-Revenue Accounts Receivable Fees Earned
