On aug. 1 2016 bill hudson established heritage realty, which completed the following transactions during the month:

A. transferred cash from personal bank account to account to be used for common stock, $30,000.

b. paid rent on office and equipment for month, $3250.

C. purchased supplies on account, 2150

d. paid creditor on account, 875

e. earned sales commissions, receiving cash 14,440.

f. paid auto expenses including rental charge for month, 1580 and miscellaneous expenses, 650.

g. paid office salaries, 3000

h. determined cost of supplies used 1300

i. paid dividends 2500

Instructions

1. journalize entries for transactions a-i

2. prepare t accounts with appropriate letter to left to each amount. after all postings determine account balances. accounts with only one single entry do not need balance.

3. prepare an unadjusted trial balance as of aug. 31, 2016

4. determine the following:

a.amount of total rev recorded in ledger

b. amount of total expenses in ledger

c. amount of net income for august

5. determine the increase or decrease in retained earnings for august.