On August 1, 2016, Bill Hudson established Heritage Realty, which completed the following transactions during the month:

Aug.1Bill Hudson transferred cash from a personal bankaccountto an account to be used for the business, $29,000.2Paid rent on office and equipment for the month, $2,350.3Purchased supplies on account, $2,250.4Paid creditor on account, $800.5Earned sales commissions, receiving cash, $14,640.6Paid automobile expenses for month, $1,520, and miscellaneous expenses, $890.7Paid office salaries, $2,000.8Determined that the cost of supplies used was $1,100.9Withdrew cash for personal use, $2,600.Required:

1.Journalizeentries for transactions Aug. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles.2.Post the journal entries to theT accounts, selecting the appropriate date to the left of each amount to identify the transactions. Determine the account balances, after allpostingis complete. Accounts containing only a single entry do not need a balance.3.Prepare anunadjusted trial balanceas of August 31, 2016.4.Determine the following:a. Amount of totalrevenuerecorded in theledger.b. Amount of totalexpensesrecorded in the ledger.c. Amount of net income for August.5.Determine the increase or decrease inowner's equityfor August.

CHART OF ACCOUNTS

Heritage RealtyGeneral Ledger

ASSETS 11Cash 12Supplies

LIABILITIES 21Accounts Payable

EQUITY 31Bill Hudson, Capital32 Bill Hudson, Drawing

REVENUE 41Sales Commissions

EXPENSES51Rent Expense52 Office Salaries Expense53 Automobile Expense54 Supplies Expense55 Miscellaneous Expense