On October 1, 2018, Jay Crowley established Affordable Realty, which completed the folkowing transactions during the month Oct 1 Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common slock, $40,000. 2 Paid rent on office and equipment for the month, $4,800. 3 Purchased supplies on account, $2,150 4 Paid creditor on account, $1,100. 5 Eamed sales commissions, receiving cash, $18,750 6 Paid automobile expenses (ncluding rental charge) for month, $1,580, and miscellaneous expenses $800 7 Paid office salaries, $3,500 8 Determined that the cost of supplies used was $1,300. 9 Paid dividends, $1,500 1 Journalize entries for transactions Oct 1 through 9. Refer to the Chart of Accounts for exact wording of account titles 2 Post the journal entries to the L accounts, selecting the appropriate date to the left of each amount to idenlity the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance 3. Prepare an unadersted triol balance as of October 31, 20r8. 4. Determine the foNowing: s. Amount of total revenue recorded in the leder b. Amount of total expenses recorded in the ledger c. Amount of net income for October. 5. Determine the increase or decrease in retained earnings for October Chart of Accounts CHART OF ACCOUNTS Aflordable Realty General Ledger ASSETS 11 Cash 12 Supplies REVENUE 41 Sales Commissions EXPENSES LIABILITIES 51 Rent Expense 21 Accounts Payable 52 Office Salaries Expense CHART OF ACCOUNTS Affordable Realty General Ledger ASSETS REVENUE 11 Cash 41 Sales Commissions 12 Supplies EXPENSES 51 Rent Expense 52 Office Salaries Expense 53 Automobile Expense 54 Supplies Expense 55 Miscellaneous Expense LIABILITIES 21 Accounts Payable EQUITY 31 Common Stock 33 Dividends 1. lournalize entries for transactions Oct 1 throuph 9. Refer to the Chart of Accounts for exact wording of accourd tiiles PNGE 1 JOURNAL ACCOUNTING EQUATICN DATE DEBIT CHIlr ASSETS LIABLITIES EQUITY 10 12 13 14 15 17 19 T Accounts 2 Post the journal entries to the Isccounts, selecting the appropriate dafe to the left of esch amount to identitly the transactions. Determine the account balances, after al posting is complete. Accounts containing only a single entry do not need a balance Cash 3 Prepere an unedjusted triel bolence as of Octaber 31, 2018 Affordable Realty UNADJUSTED TRIAL BALANCE October 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Supplies Accounts Payable 4 Common Stock 5 Dividends 6Sales Commissions 7Rent Expense Office Salaries Expense 9 Automobile Expense 0 Supplies Expense 11 Miscellaneous Expense 12 Totals s Office Salaries Expanse 9Automobile Expense 13 Supplies Expense 1 Miscellaneous Expense 12 Totals Final Questons 4 Determine the folowing: 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 October. $ 5 Determine the increase or decrease in cetained earnings for October
