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
		Account No.	Debit Balances	Credit Balances
	Cash	11	13,020
	Accounts Receivable	12	30,330
	Prepaid Insurance	13	1,480
	Office Supplies	14	890
	Land	16
	Accounts Payable	21		8,580
	Unearned Rent	22
	Notes Payable	23
	Common Stock	31		10,000
	Retained Earnings	32		16,600
	Dividends	33	1,040
	Fees Earned	41		147,950
	Salary and Commission Expense	51	108,260
	Rent Expense	52	14,800
	Advertising Expense	53	8,730
	Automobile Expense	54	2,660
	Miscellaneous Expense	59	1,920
			183,130	183,130

The following business transactions were completed by Valley Realty during August 20Y8:

Aug. 1.	Purchased office supplies on account, $1,320.
2.	Paid rent on office for month, $5,100.
3.	Received cash from clients on account, $25,480.
5.	Paid insurance premiums, $3,670.
9.	Returned a portion of the office supplies purchased on August 1, receiving full credit for their cost, $200.
17.	Paid advertising expense, $2,040.
23.	Paid creditors on account, $4,590.

29.	Paid miscellaneous expense, $460.
30.	Paid automobile expense (including rental charges for an automobile), $1,530.
31.	Discovered an error in computing a commission during July; received cash from the salesperson for the overpayment, $1,020.
31.	Paid salaries and commissions for the month, $6,510.
31.	Recorded revenue earned and billed to clients during the month, $30,580.
31.	Purchased land for a future building site for $91,700, paying $10,100 in cash and giving a note payable for the remainder.
31.	Paid dividends, $1,020.
31.	Rented land purchased on August 31 to a local university for use as a parking lot during football season (September, October, and November); received advance payment of $3,060.

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, 20Y8 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 () 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. For a compound transaction, if an amount box does not require an entry, leave it blank.