On October 1, 20Y6, Jay Crowley established Affordable Realty, which completed the following transactions during the month: Oct 1 2 3 4 Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, S40,000 Paid rent on office and equipment for the month, $4,800. Purchased supplies on account, $2,150. Paid creditor on account, $1,100. Earned sales commissions, receiving cash, 518,750. Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $800. Paid office salaries, $3,500. 5 6 7 8 Determined that the cost of supplies used was $1,300. 9 Pald dividends, $1,500 1. Journaize 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 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 only a single entry do not need a balance. 3. Prepare an unadjusted trial balance as of October 31, 20Y6. 4. Determine the following: a. 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 General Ledger ASSETS REVENUE 11 Cash 41 Sales Commissions 12 Supplies EXPENSES LIABILITIES 51 Rent Expense 21 Accounts Payable 52 Office Salaries Expense 53 Automobile Expense EQUITY 54 Supplies Expense 31 Common Stock 55 Miscellaneous Expense 33 Dividends PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DERIT CREDIT ASSETS LIABILITIES EQUITY 1 5 4 5 Journal 10 12 13 14 16 17 18 2. Post the journal entries to the 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 ony a single entry do not need a balance. Cash Bal Charice Journal T Accounts Chart of Accounts Journal T Accounts Bal. Supplies Bal. Accounts Payable Bal. Common Stock All work und Journal T Accounts Un Chart of Accounts Journal TAccounts Common Stock Dividends Sales Commissions Rent Expense TAccounts Rent Expense Office Salaries Expense Automobile Expense Supplies Expense TAccounts Office Salaries Expense Automobile Expense Supplies Expense Miscellaneous Expense
