Problems

Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted

trial balance on March $31,2023,$ follows:

Elite Realty

Unadjusted Trial Balance

March $31,2023$ The following business transactions were completed by Elite Realty during April $2023$:

Apr. $1.$ Paid rent on office for month, $$6,500.$

Purchased office supplies on account, $$2,300.$

Paid insurance premiums, $$6,000.$

Received cash from clients on account, $$52,300.$

Purchased Land $($Acct No $16)$ for a future building site for $$200,000,$ paying $$30,000$ in

cash and giving a Note Payable $($Acct No $23)$ for the remainder.

Paid creditors on account, $$6,450.$

Returned a portion of the office supplies purchased on April $2,$ receiving full credit for

their cost, $$325.$

Paid advertising expense, $$4,300.$

Discovered an error in computing a commission; received cash from the salesperson for

the overpayment, $$2,500.$

Paid automobile expense $($including rental charges for an automobile$),$ $$1,500.$

Paid miscellaneous expenses, $$1,400.$

Recorded revenue earned and billed to clients during the month, $$57,000.$

Paid salaries and commissions for the month, $$11,900.$

Paid dividends, $$4,000.$

Rented land purchased on April $15$ to local merchants' association for use as a parking

lot in May and June, during a street rebuilding program; received advance payment of

$$10,000.$ Unearned Rent is account number $22.$

Instructions for problem $1$

i$.$ Record the April $1,2023,$ balance of each account in the appropriate balance column of

a general ledger and write Balance in the item section.

ii$.$ Journalize the transactions for April. Journal entry explanations may be omitted. Use

the account numbers provided in the problem, not the Chapter $2$ Chart of Accounts.

iii. Post each journal entry to the general ledger extending the account balance to the

appropriate balance column after each posting.

iv$.$ Prepare an unadjusted trial balance of the ledger as of April $30,2023.$

v$.$ Assume that the April $30$ transaction for salaries and commissions should have been

$$19,100.$

a$.$ Why did the unadjusted trial balance in $($iv$)$ balance before the correction?

b$.$ Journalize the correcting entry.

c$.$ Is this error a transposition or slide?