On January 1, 20Y5, Fahad Ali established Mountain Top Realty, which completed the following transactions during the month:

1. Fahad Ali transferred cash from a personal bank account to an account to be used for the business, $18,000.
2. Paid rent on office and equipment for the month, $3,290.
3. Purchased supplies on account, $970.
4. Paid creditor on account, $360.
5. Earned fees, receiving cash, $14,940.
6. Paid automobile expenses (including rental charge) for month, $910, and miscellaneous expenses, $610.
7. Paid office salaries, $1,910.
8. Determined that the cost of supplies used was $540.
9. Withdrew cash for personal use, $880.

Required:

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1. Journalize entries for transactions (a) through (i) (in chronological order), using the following account titles: Cash; Supplies; Accounts Payable; Fahad Ali, Capital; Fahad Ali, Drawing; Fees Earned; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. If an amount box does not require an entry, leave it blank.

a.	Accounts PayableAccounts ReceivableCashFahad Ali, CapitalFahad Ali, DrawingCash	Cash	Cash
	Accounts PayableCashFahad Ali, CapitalFahad Ali, DrawingFees EarnedFahad Ali, Capital	Fahad Ali, Capital	Fahad Ali, Capital
b.	Accounts PayableCashFahad Ali, CapitalFahad Ali, DrawingRent ExpenseRent Expense	Rent Expense	Rent Expense
	Accounts PayableCashFahad Ali, CapitalFahad Ali, DrawingRent ExpenseCash	Cash	Cash
c.	Accounts PayableAccounts ReceivableCashSupplies ExpenseSuppliesSupplies	Supplies	Supplies
	Accounts PayableAccounts ReceivableCashSupplies ExpenseSuppliesAccounts Payable	Accounts Payable	Accounts Payable
d.	Accounts PayableAccounts ReceivableCashRent ExpenseSuppliesAccounts Payable	Accounts Payable	Accounts Payable
	Accounts PayableCashRent ExpenseSupplies ExpenseSuppliesCash	Cash	Cash
e.	Accounts PayableAccounts ReceivableCashUnearned Fees EarnedFees EarnedCash	Cash	Cash
	Accounts ReceivableAccounts PayableCashUnearned Fees EarnedFees EarnedFees Earned	Fees Earned	Fees Earned
f.	Accounts PayableAccounts ReceivableAutomobile ExpenseCashFees EarnedAutomobile Expense	Automobile Expense	Automobile Expense
	Accounts PayableAccounts ReceivableCashMiscellaneous ExpenseSuppliesMiscellaneous Expense	Miscellaneous Expense	Miscellaneous Expense
	Accounts PayableAccounts ReceivableAutomobile ExpenseCashMiscellaneous ExpenseCash	Cash	Cash
g.	Accounts PayableAccounts ReceivableCashSuppliesOffice Salaries ExpenseOffice Salaries Expense	Office Salaries Expense	Office Salaries Expense
	Accounts PayableAccounts ReceivableCashOffice Salaries ExpenseFees EarnedCash	Cash	Cash
h.	Accounts PayableAccounts ReceivableCashSupplies ExpenseSuppliesSupplies Expense	Supplies Expense	Supplies Expense
	Accounts PayableAccounts ReceivableCashSupplies ExpenseSuppliesSupplies	Supplies	Supplies
i.	Accounts PayableAccounts ReceivableCashFahad Ali, CapitalFahad Ali, DrawingFahad Ali, Drawing	Fahad Ali, Drawing	Fahad Ali, Drawing
	Accounts PayableAccounts ReceivableCashFahad Ali, CapitalFahad Ali, DrawingCash	Cash	Cash

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1. Identify which accounts are affected in each transaction. Keep in mind that every transaction involves at least two accounts. Determine whether the account increases or decreases and record each increase or decrease following the rules of debit and credit. Remember total debits should equal total credits in your entries.

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2. Prepare T accounts, using the account titles in (1). Post the journal entries to these T accounts, selecting the appropriate letter to the left of each amount to identify the transactions. Determine the account balances (when required), after all posting is complete, for all accounts having two or more debits or credits.

Cash
a.b.c.d.h.i.j.k.l.m.n.a.	fill in the blank cbfb17f2e01c03a_2	a.b.c.e.h.j.k.l.m.n.b.	fill in the blank cbfb17f2e01c03a_4
b.c.d.e.f.h.i.j.k.l.n.e.	fill in the blank cbfb17f2e01c03a_6	a.c.d.e.h.j.l.m.n.d.	fill in the blank cbfb17f2e01c03a_8
		a.c.e.f.h.j.k.m.n.f.	fill in the blank cbfb17f2e01c03a_10
		a.c.e.g.h.j.l.m.n.g.	fill in the blank cbfb17f2e01c03a_12
		a.c.e.h.i.k.l.n.i.	fill in the blank cbfb17f2e01c03a_14
Bal.	fill in the blank cbfb17f2e01c03a_15

Supplies
a.b.c.d.e.f.g.h.i.j.k.l.m.n.c.	fill in the blank cbfb17f2e01c03a_17	a.b.c.d.e.f.g.h.i.j.k.l.m.n.h.	fill in the blank cbfb17f2e01c03a_19
Bal.	fill in the blank cbfb17f2e01c03a_20

Accounts Payable
a.b.c.d.e.f.g.h.i.j.k.l.m.n.d.	fill in the blank cbfb17f2e01c03a_22	a.b.c.d.e.f.g.h.i.j.k.l.m.n.c.	fill in the blank cbfb17f2e01c03a_24
		Bal.	fill in the blank cbfb17f2e01c03a_25

Fahad Ali, Capital
		a.b.c.d.e.f.g.h.i.j.k.l.m.n.a.	fill in the blank cbfb17f2e01c03a_27

Fahad Ali, Drawing
a.b.c.d.e.f.g.h.i.j.k.l.m.n.i.	fill in the blank cbfb17f2e01c03a_29

Fees Earned
		a.b.c.d.e.f.g.h.i.j.k.l.m.n.e.	fill in the blank cbfb17f2e01c03a_31

Rent Expense
a.b.c.d.e.f.g.h.i.j.k.l.m.n.b.	fill in the blank cbfb17f2e01c03a_33

Office Salaries Expense
a.b.c.d.e.f.g.h.i.j.k.l.m.n.g.	fill in the blank cbfb17f2e01c03a_35

Automobile Expense
a.b.c.d.e.f.g.h.i.j.k.l.m.n.f.	fill in the blank cbfb17f2e01c03a_37

Supplies Expense
a.b.c.d.e.f.g.h.i.j.k.l.m.n.h.	fill in the blank cbfb17f2e01c03a_39

Miscellaneous Expense
a.b.c.d.e.f.g.h.i.j.k.l.m.n.f.	fill in the blank cbfb17f2e01c03a_41

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2. Each increase or decrease recorded in the journal entries corresponds to a debit or credit in the T-accounts, following the rules of debit and credit. Net debits against credits to determine the balance in each T-account and double-check to see if it is a normal balance for that account classification.

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3. Prepare an unadjusted trial balance as of January 31, 20Y5. If an amount box does not require an entry, leave it blank.

	Debit Balances	Credit Balances
Accounts PayableCashFees EarnedFahad Ali, CapitalNotes PayableCash	Cash	Cash
Accounts PayableFahad Ali, CapitalFees EarnedNotes PayableSuppliesSupplies	Supplies	Supplies
Accounts PayableAutomobile ExpenseRent ExpenseSuppliesSupplies ExpenseAccounts Payable	Accounts Payable	Accounts Payable
CashFahad Ali, CapitalFahad Ali, DrawingSupplies ExpenseSuppliesFahad Ali, Capital	Fahad Ali, Capital	Fahad Ali, Capital
Accounts PayableFees EarnedFahad Ali, CapitalFahad Ali, DrawingNotes PayableFahad Ali, Drawing	Fahad Ali, Drawing	Fahad Ali, Drawing
CashFees EarnedFahad Ali, DrawingMiscellaneous ExpenseOffice Salaries ExpenseFees Earned	Fees Earned	Fees Earned
Accounts PayableFees EarnedFahad Ali, CapitalNotes PayableRent ExpenseRent Expense	Rent Expense	Rent Expense
Accounts PayableFahad Ali, CapitalFees EarnedNotes PayableOffice Salaries ExpenseOffice Salaries Expense	Office Salaries Expense	Office Salaries Expense
Accounts PayableAutomobile ExpenseFees EarnedFahad Ali, CapitalNotes PayableAutomobile Expense	Automobile Expense	Automobile Expense
Accounts PayableFees EarnedFahad Ali, CapitalNotes PayableSupplies ExpenseSupplies Expense	Supplies Expense	Supplies Expense
Accounts PayableFees EarnedFahad Ali, CapitalMiscellaneous ExpenseNotes PayableMiscellaneous Expense	Miscellaneous Expense	Miscellaneous Expense
	fill in the blank 7e8214fdefa1fa7_34	fill in the blank 7e8214fdefa1fa7_35

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4. As a result of the January transactions (a-i), determine the following:

a. Amount of total revenue recorded in the ledger. $fill in the blank 009c49f8ffc3fa0_1

b. Amount of total expenses recorded in the ledger. $fill in the blank 009c49f8ffc3fa0_2

c. Amount of net income for January. $fill in the blank 009c49f8ffc3fa0_3

5. Determine the total increase or decrease in owner's equity for January. $fill in the blank 009c49f8ffc3fa0_4

IncreaseDecreaseIncrease