REQUIRED WORK FOR MAY

1. From the Worksheet, journalize and post adjusting and closing entries (p.6 of journal)

Adjustment Data For May

a. One month's rent had expired. Paid 4 months rent in Advance April, $3,600.

b. An inventory shows $100 of office supplies remaining.

c. Depreciation on office equipment, $170.

d. Depreciation on automobile, $300.

_____________________________________________________________________________________________________________________________________________________

Requirement 1. From the worksheet, journalize and post adjusting and closing entries (p. 6 of journal).

Start by journalizing the adjusting entries, beginning with the rent adjustment. (Record debits first, then credits. Exclude explanations from journal entries.)

Sherman Realty Worksheet For the Month Ended May 31, 201X Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Titles Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 32.373 32.373 32.373 3,700 3.700 3.700 2,700 a. 900 1.800 1.800 b 950 100 100 1,050 9,000 9.000 9.000 170 c. 170 340 340 14,000 14,000 14,000 300 d. 300 600 600 17.050 17.050 Accounts Receivable Prepaid Rent Office Supplies Office Equipment Acc. Dep., Office Equipment Automobile Acc. Dep., Automobile Accounts Payable Jacob Sherman, Capital Jacob Sherman, Withdrawals Commissions Earned Salaries Expense Gas Expense Repairs Expense Telephone Expense Advertising Expense 17,050 38,865 38,865 36.865 1,600 1.600 1.600 14.600 14,600 14,600 1.100 1.100 1.100 42 42 42 690 690 690 530 530 530 1.700 500 1.700 1,700 500 Miscellaneous Expense 500 88.985 68.985 a. 900 900 900 Totals Rent Expense Office Supplies Expense Dep. Expense, Office Equip. Dep. Expense, Automobile b. 950 950 950 170 300 170 300 170 300 2.320 2.320 89,455 89,455 Totals 14,600 82.573 6.882 7.718 54.855 7.718 Net Income Totals 14,600 14,600 82,573 82.573 2018 May 1 Purchased additional office supplies on account from The Office Store, 5900. 2 Paid Tampa Herald advertising bill for April, $700. 3 Sold a house to Carol Turner and collected a commission of $5,900. 6 Paid gas bill to Harvey Petroleum Gas Co., $42. 8 Collected commission from Wet Land Developers for sale of building lot on April 17, $7,500 12 Paid $450 to Foster Realtors Assoc. to send employees to realtors' workshop. 15 Paid Tessa Hardy, office secretary, $550. 17 Sold a house to Eric Harmon and earned a commission of $3,700. Commission to be received on June 10. 18 Sold a building lot to Argento Builders and collected a commission of $5,000. 22 Sent a check to Samaritan Charities for $50 to help sponsor a local road race to aid the poor. (This amount is not to be considered an advertising expense; it is a business expense and is posted to Miscellaneous Expense.) 24 Paid Jeep East $690 for repairs to automobile due to accident. 28 Jacob Sherman withdrew $1,600 from the business to pay personal expenses. 30 Paid Tessa Hardy, office secretary, $550. 30 Paid Vonage telephone bill, $530. 30 Advertising bill from Tampa Herald for May, $1,700. The bill is to be paid on June 2. Sherman Realty Chart of Accounts Assets Revenue 111 Cash 411 Commissions Earned 112 Accounts Receivable Expenses 114 Prepaid Rent 511 Rent Expense 115 Office Supplies 512 Salaries Expense 121 Office Equipment 513 Gas Expense 122 Accumulated Depreciation, Office Equipment 514 Repairs Expense 123 Automobile 515 Telephone Expense 124 Accumulated Depreciation, Automobile 516 Advertising Expense Liabilities 517 Office Supplies Expense 211 Accounts Payable 518 Depreciation Expense, Office Equipment 212 Salaries Payable Depreciation Expense, Automobile Owner's Equity 524 Miscellaneous Expense 311 Jacob Sherman, Capital 312 Jacob Sherman, Withdrawals 313 Income Summary 519 a. One month's rent had expired. Paid 4 months' rent in advance on April 1, $3,600. Journal Entry Date Account Titles PR Dr. 2017 May Cr. b. An inventory shows $100 of office supplies remaining. Journal Entry Date Account Titles PR Dr. Cr. 2017 May c. Depreciation on office equipment, $170. Journal Entry Date Account Titles 2018 May PR Dr. Cr. d. Depreciation on automobile, $300. Journal Entry Account Titles Date PR Dr. Cr. 2018 May Next, journalize closing entries for May. (Record debits first, then credits. Exclude explanations from journal entries.) Begin by closing out the revenue account. Journal Entry Date Account Titles PR Dr. Cr. 201X May Close out the expense accounts. Journal Entry Account Titles Date PR Dr. Cr. 2017 May Close out Income Summary Journal Entry Date Account Titles PR Dr. Cr. 2018 May Close out the Withdrawals account. Journal Entry Date Account Titles PR Dr. Cr. 2018 May Post the adjusting and closing entries to the ledger. Sherman Realty's May transactions have been entered into the enter a "0". For purposes of this problem, ignore posting references. Select the applicable description in the "Explan Review the adjusting and closing entries you prepared above. Cash Account No. 111 Post. Balance Date Explanation Ref. Debit Credit Debit Credit 2018 30 Apr. May 21 700 31 5,900 6 421 8 7,500 12 4501 15 550 19,1351 18,435 24,335 24,293 31,793 31,343 30,793 35,793 35,743 35,053 33,453 32,903 32,373 18 5,000 22 501 24 690 28 1,600 30 550 30 530 Accounts Receivable Account No. 112 Post. Balance Date Explanation Ref. Debit Credit Debit Credit 2018 Apr. May 30 7,500 81 7,500 17 3,700 3,700 Prepaid Rent Account No. 114 Post. Ref. Balance Debit Credit Explanation Debit Credit Date 2018 Apr. May 301 2,700 Office Supplies Account No. 115 Post. Balance Date Explanation Ref. Debit Credit Debit Credit 2017 30 150 Apr. May 1 900 1,050 Office Equipment Post. Account No. 121 Balance Debit Credit Date Explanation Ref. Debit Credit 2018 30 9,000 Apr. May Accum. Depreciation, Office Equipment Account No. 122 Balance Post. Date Explanation Ref. Debit Credit Debit Credit 30 170 Apr. May Automobile Account No. 123 Post. Ref. Balance Debit Credit Date Explanation Debit Credit 2018 Apr. May 30 14,000 Accum. Depreciation, Automobile Account No. 124 Post. Balance Explanation Ref. Debit Credit Debit Credit Date 2018 30 300 Apr. May Accounts Payable Account No. 211 Post. Balance Date Explanation Ref. Debit Credit Debit Credit 2017 30 Apr. May 1 9001 15,150 16,050 15,350 17,050 2 700 30 1,700 Account No. 311 Jacob Sherman, Capital Post. Explanation Ref. Balance Date Debit Credit Debit Credit 2018 Apr. 30 36,865 May Jacob Sherman, Withdrawals Account No. 312 Post. Balance Debit Credit Date Explanation Debit Credit 2018 May 28 1,600 1,6001 Account No. 313 Income Summary Post. Explanation Ref. Balance Debit Credit Date Debit Credit 2018 May Account No. 411 Commissions Earned Post. Explanation Ref. Balance Date Debit Credit Debit Credit 2018 May 3 17 5,900 3,700 5,000 5,900 9,600 14,600 18 Rent Expense Post. Account No. 511 Balance Date Explanation Ref. Debit Credit Debit Credit 2018 May Account No. 512 Salaries Expense Post. Explanation Ref. Balance Date Debit Credit Debit Credit 2018 May 15 550 550 30 550 1,100 Gas Expense Account No. 513 Post. Balance Date Explanation Ref. Debit Credit Debit Credit 2018 May 6 42 42 Repairs Expense Account No. 514 Post. Ref. Balance Debit Credit Date Explanation Debit Credit 2018 May 24 690 6901 Telephone Expense Account No. 515 Balance Post. Date Explanation Ref. Debit Credit Debit Credit 2017 May 30 530 530 Advertising Expense Account No. 516 Post. Balance Date Explanation Ref. Debit Credit Debit Credit 2017 May 30 1,700 1,700 Office Supplies Expense Account No. 517 Post. Balance Date Explanation Ref. Debit Credit Debit Credit 2018 May Account No. 518 Depreciation Expense, Office Equipment Post. Date Explanation Ref. Balance Debit Credit Debit Credit 2018 May Depreciation Expense, Automobile Account No. 518 Post. Balance Date Explanation Ref. Debit Credit Debit Credit 2018 May Miscellaneous Expense Account No. 524 Post. Balance Date Explanation Ref. Debit Credit Debit Credit 2018 May 12 450 4501 22 50 500