On January 1, 2045. Fahad Ali established Mountain Top Realty, which completed the following transactions during the month: Jan. 1 2 3 4 5 Fahad Ali transferred cash from a personal bank account to an account to be used for the business, $29,000 Paid rent on office and equipment for the month. $2.250. Purchased supplies on account. $2.300. Paid creditor on account. $825. Earned fees, receiving cash. $15.680. Paid automobile expenses (including rental charge) for month. $1.620, and miscellaneous expenses, $830 Paid office salaries, $2,200. Determined that the cost of supplies used was $1,350 Withdrew cash for personal use. $2.800. 6 7 8 9 Required: 1. Journalize entries for transactions Jan. 1 through 9. Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW joumals wl automatically indent a credit entry when a credit amount is entered. 2. Post the journal entries to the T accounts, selecting the appropriate date to the left of each amount to identify the transactions. Determine the account balances after all posting is complete. Accounts containing oniy a single entry do not need a balance. Determine the correct ending balance. The ending balance label is provided on the left side of the account even when the ending balance is a credit. The unused cell on the balance line should be left blank 3. Prepare an unadjusted trial balance as of January 31, 2015 4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger c. Amount of net income for January 5. Determine the increase or decrease in owner's equity for January CHART OF ACCOUNTS Mountain Top Realty General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Supplies EXPENSES LIABILITIES 51 Rent Expense 21 Accounts Payable 52 Office Salaries Expense 53 Automobile Expense 54 Supplies Expense EQUITY 55 Miscellaneous Expense 31 Fahad Ali, Capital 32 Fahad Ali, Drawing 1. Joumalize entries for transactions Jan. 1 through 9. Refer to the chart of accounts for the exact wording of the account titles CNOW joumais do not use lines for journal explanations. Every line on a joumai page is used for debitor credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF: DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 S 6 7 8 10 11 12 13 14 15 16 17 18 2. Post the journal entries to the Taccounts, selecting the appropriate date to the left of each amount to identify the transactions. Determine the account balances after all posting is complete Accounts containing only a single entry do not need a balance. Determine the correct ending balance. The ending balance label is provided on the left side of the account even when the ending balance is a credit. The unused cell on the balance line should be left blank Cash Ball Supplies Bal. Accounts Payable Bal. Fahad Ali, Capital Fahad Ali, Drawing Fees Earned Rent Expense Office Salaries Expense Automobile Expense Supplies Expense Miscellaneous Expense 3. Prepare an unadjusted trial balance as of January 31, 2045. Mountain Top Realty UNADJUSTED TRIAL BALANCE January 31, 2015 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Supplies 3 Accounts Payable Fahad Ali, Capital Fahad Ali, Drawing 6 Fees Earned 7 Rent Expense 8 Office Salaries Expense 9 Automobile Expense 10 Supplies Expense 1Miscellaneous Expense 12 Totals 4. Determine the following: a. Amount of total revenue recorded in the ledger. S b. Amount of total expenses recorded in the ledger. $ c. Amount of net income for January. $ 5. Determine the increase or decrease in owner's equity for January $
