March 31, 2018

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	27,000.00
2	Accounts Receivable	60,000.00
3	Prepaid Insurance	2,500.00
4	Office Supplies	1,600.00
5	Land
6	Accounts Payable		13,800.00
7	Unearned Rent
8	Notes Payable
9	Common Stock		10,000.00
10	Retained Earnings		36,900.00
11	Dividends	1,600.00
12	Fees Earned		232,000.00
13	Salary and Commission Expense	146,800.00
14	Rent Expense	27,000.00
15	Advertising Expense	18,000.00
16	Automobile Expense	4,500.00
17	Miscellaneous Expense	3,700.00
18	Totals	292,700.00	292,700.00

The following business transactions were completed by Elite Realty during April 2018. Enter the transactions through the 23rd on Page 18 of the two-column journal:

Apr.	1	Paid rent on office for month, $5,000.
	2	Purchased office supplies on account, $2,400.
	5	Paid insurance premiums, $5,600.
	10	Received cash from clients on account, $52,800.
	15	Purchased land for a future building site for $222,500, paying $24,000 in cash and giving a note payable for the remainder.
	17	Paid creditors on account, $6,250
	20	Returned a portion of the office supplies purchased on April 2, receiving full credit for their cost, $380.
	23	Paid advertising expense, $4,300.

Enter the following transactions on Page 19 of the two-column journal:

Apr.	27	Discovered an error in computing a commission; received cash from the salesperson for the overpayment, $2,600.
	28	Paid automobile expense (including rental charges for an automobile), $1,200.
	29	Paid miscellaneous expenses, $1,500.
	30	Recorded revenue earned and billed to clients during the month, $54,000.
	30	Paid salaries and commissions for the month, $13,500.
	30	Paid dividends, $4,000.
	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 $9,400.
	Required:
1.	Record the April 1, 2018, balance of each account in the appropriate balance column of a four-column account, type Balance in the item section, and select a check mark in the Posting Reference column.
2.	Journalize the transactions for April in a two-column journal beginning on Page 18. Refer to the Chart of Accounts for exact wording of account titles. Insert the appropriate posting references in both the journal and the ledger as each item is posted.
3.	Post to the ledger, extending the account balance to the appropriate balance column after each posting. Post in chronological order. For transactions occurring on the same day, post in the order presented in the instructions. Insert the appropriate posting references in both the journal and the ledger as each item is posted.
4.	Prepare an unadjusted trial balance of the ledger as of April 30, 2018.
5.	Assume that the April 30 transaction for salaries and commissions should have been $15,300. (a) Why did the unadjusted trial balance in (4) balance? (b) Journalize the correcting entry on April 30. Use page 20. (Note: You will not be required to post this entry to the ledger at this time.) (c) Is this error a transposition or slide?

CHART OF ACCOUNTSElite RealtyGeneral Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Prepaid Insurance
14	Office Supplies
16	Land
	LIABILITIES
21	Accounts Payable
22	Unearned Rent
23	Notes Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends
	REVENUE
41	Fees Earned

	EXPENSES
51	Salary and Commission Expense
52	Rent Expense
53	Advertising Expense
54	Automobile Expense
59	Miscellaneous Expense

2. Journalize the transactions for April in a two-column journal beginning on Page 18. Refer to the Chart of Accounts for exact wording of account titles. Insert the appropriate posting references in both the journal and the ledger as each item is posted.

PAGE 18PAGE 19

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17

Record the April 1, 2018, balance of each account in the appropriate balance column of a four-column account, type Balance in the item section, and select a check mark in the Posting Reference column. 3. Post to the ledger, extending the account balance to the appropriate balance column after each posting. Post in chronological order. For transactions occurring on the same day, post in the order presented in the instructions. Insert the appropriate posting references in both the jourLEDGER

Account: Cash11Account No.

Account: Accounts Receivable12Account No.

Account: Prepaid Insurance13Account No.

Account: Office Supplies14Account No.

Account: Land16Account No.

Account: Accounts Payable21Account No.

Account: Unearned Rent22Account No.

Account: Notes Payable23Account No.

Account: Common Stock31Account No.

Account: Retained Earnings32Account No.

Account: Dividends33Account No.

Account: Fees Earned41Account No.

Account: Salary and Commission Expense51Account No.

Account: Rent Expense52Account No.

Account: Advertising Expense53Account No.

	DATE	ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
						DEBIT	CREDIT
1
2

Account: Automobile Expense54Account No.

Account: Miscellaneous Expense59Account No.

nal and the ledger as each item is posted.

4. Prepare an unadjusted trial balance of the ledger as of April 30, 2018.

Elite Realty

UNADJUSTED TRIAL BALANCE

April 30, 2018

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Accounts Receivable
3	Prepaid Insurance
4	Office Supplies
5	Land
6	Accounts Payable
7	Unearned Rent
8	Notes Payable
9	Common Stock
10	Retained Earnings
11	Dividends
12	Fees Earned
13	Salary and Commission Expense
14	Rent Expense
15	Advertising Expense
16	Automobile Expense
17	Miscellaneous Expense
18	Totals

5. Assume that the April 30 transaction for salaries and commissions should have been $15,300.

(a) Why did the unadjusted trial balance in (4) balance?

(b) Journalize the correcting entry on April 30. Use page 20. (Note: You will not be required to post this entry to the ledger at this time.)

PAGE 20

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2

(c) Is this error a transposition or slide?