On October 1, 20Y6, Jay Crowley established Affordable Realty, which completed the following transactions during the month:
Question:
On October 1, 20Y6, Jay Crowley established Affordable Realty, which completed the following transactions during the month:
Oct.1Jay Crowley transferred cash from a personal bankaccountto an account to be used for the business in exchange for common stock, $31,500.2Paid rent on office and equipment for the month, $2,450.3Purchased supplies on account, $2,200.4Paid creditor on account, $860.5Earned sales commissions, receiving cash, $16,430.6Paid automobile expenses (including rental charge) for month, $1,650, and miscellaneous expenses, $690.7Paid office salaries, $2,200.8Determined that the cost of supplies used was $1,100.9Paid dividends, $3,600.1.Journalizeentries for transactions Oct. 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 unadjusted trial balanceas of October 31, 20Y6.4.Determine the following:a. Amount of totalrevenuerecorded in theledger.b. Amount of totalexpensesrecorded in the ledger.c. Amount of net income for October.5.Determine the increase or decrease inretained earningsfor October.