Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On October 1,20 Y 6 , Jay Crowley established Affordable Realty, which completed the following transactions during the month: Oct. 1 Jay Crowley transferred cash

image text in transcribed
On October 1,20 Y 6 , 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, $32,500. 2 Paid rent on office and equipment for the month, $2,350. 3 Purchased supplies on account, \$2,250. 4 Paid creditor on account, $900. 5 Earned sales commissions, receiving cash, $16,360. 6 Paid automobile expenses (including rental charge) for month, $1,690, and miscellaneous expenses, $620. 7 Paid office salaries, $3,000. 8 Determined that the cost of supplies used was $1,100. 9 Paid dividends, $3,000. 1. Journalize entries for transactions Oct. 1 through 9. 2. Post the journal entries to the T 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, 20 Y 6. 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

Step: 3

blur-text-image

Students also viewed these Accounting questions