Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On October 1, 2018, Jay Crowley established Affordable Realty, which completed the following transactions during the month: Oct. 1 Jay Crowley transferred cash from a

On October 1, 2018, Jay Crowley established Affordable Realty, which completed the following 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 stock, $30,600.
2 Paid rent on office and equipment for the month, $2,750.
3 Purchased supplies on account, $2,350.
4 Paid creditor on account, $890.
5 Earned sales commissions, receiving cash, $15,800.
6 Paid automobile expenses (including rental charge) for month, $1,600, and miscellaneous expenses, $680.
7 Paid office salaries, $2,000.
8 Determined that the cost of supplies used was $1,150.
9

Paid dividends, $2,800.

image text in transcribedimage text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Journal JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 T Accounts 2. Post the journal entries to the T accounts, selecting the appropriate date to the left of each amount to identify the trans Cash Bal. Supplies Bal. Accounts Payable Bal. Common Stock Dividends Sales Commissions Rent Expense Office Salaries Expense Automobile Expense Supplies Expense Miscellaneous Expense Unadjusted Trial Balance 3. Prepare an unadjusted trial balance as of October 31, 2018. Affordable Realty UNADJUSTED TRIAL BALANCE October 31, 2018 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Supplies 3 Accounts Payable 4 Common Stock 5 Dividends 6 Sales Commissions 7 Rent Expense 8 Office Salaries Expense 9 Automobile Expense 10 Supplies Expense 11 Miscellaneous Expense 12 Totals Final Questions 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 October. $ 5. Determine the increase or decrease in retained earnings for October $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Auditing

Authors: Michael C. Knapp

8th edition

978-0538466790, 538466790, 978-1285066608

More Books

Students also viewed these Accounting questions

Question

6. List and explain important trends in compensation management.

Answered: 1 week ago

Question

What are our strategic aims?

Answered: 1 week ago