Sousa Realty

Review the accounting cycle twice

Make a chart of account for Sousa Realty

Assets

111 cash Revenue

112 accounts receivable 411 Commission Earned

114 prepaid rent Expenses

115 office equipment 511 Rent Expense

121 office supplies 512 Salaries expense

122 accumulated depreciation, office equipment 513 Gas Expense

123 automobile 514 Repairs Expense

124 accumulated depreciation, automobile 515 Telephone Expense

Liabilities 516 Advertising Expense

211 accounts payable 517 Office Supplies Expense

212 salaries payable 518 Depreciation Expense, Office equip

Owners equity 519 Depreciation expense, automobile

311 James Sousa, Capital 524 Miscellaneous Expense

312 James Sousa, Withdrawals

313 Income summary

On September 1, 201x James Sousa opened a real estate office called Sousa Realty. The following transactions were completed for the month of September.

September 1, James Sousa invested $12000 cash in the real estate agency along with $5000 of office supplies.

September 1, rented and paid 5 months, rent in advance to Murray Property Management $1000

September 1, bought an automobile on account from Hyundai North $19000

September 4 Purchased office supplies from paper company for cash $600

September 5 purchased additional office supplies from paper company, on account $250

September 6, sold a house to Hue and collected a $11000 commission.

September 8, paid gas bill to Haffner gas go $45

September 15 paid Rosie, office secretary $300

September 17 sold a building lot to tropical and earned a commission $10000: payment to be received on October 6.

September 20, James Sousa withdrew $4000 from the business to pay personal expenses.

September 21 sold a house to Suzanne and collected $7000 commission.

September 22 paid gas bill $80

September 24 paid Hyundia North $800 to repair automobile

September 30 paid Rosie, office secretary $300

September 30 paid Comcast September telephone bill $330

September 30 received advertising bill September $900 from Chicago times, the bill is to be paid on October 2

Required work for September

1 Journalize transaction and post to the ledger accounts.

2 prepare a trial balance in the first two columns of the worksheet and complete the worksheet using the fallowing adjustment data:

A. one months rent had expired.

B. an inventory shows $100 of office supplies remaining

C. depreciation on office equipment $160

D. depreciation on automobile $210

3 prepare a September income statement, statement of owners equity, and balance sheet

4 from the worksheet, journalize and post adjusting and closing entries.

5 prepare a post closing trial balance.

During October, Sousa Realty completed these transactions.

October 1 purchased additional supplies on account from paper co. $850

October 2 paid Chicago times advertising bill for September $900 Chicago times

October 3 sold a house to Helen and collected a commission of $7300

October 6 paid gas bill to Heffner gas co, $29

October 8 collected commission from tropic for sale building lot on September 17 $10000

October 12 paid $530 to long realtors assoc. to send employees to realtors workshop

Oct. 15 paid Rosie, office secretary $300

Oct. 17 sold a house to Gary and earned a commission of $2900. Commission to be received on November 10

Oct. 18 sold a building lot to Lombardi and collected a commission of $4500

Oct. 22 sent a check to heritage for $65 to help sponsor local road race (this amount is not considered an advertising expense, it is a business expense and is posted to miscellaneous expense)

Oct. 24 paid Hyundai North $620 for repairs to automobile due to accident.

Oct. 28 James Sousa withdrew $2200 from the business to pay personal expenses.

Oct. 30 paid Rosie, Office secretary $300

Oct. 30 paid Comcast telephone bill $480

Oct. 30 advertising bill from Chicago times for October $1300. The bill is to be paid on November 2.

Required work for October.

1 journalize transactions in a general journal and post to ledger accounts.

2 prepare a trial balance in the first two columns of a blank fold-out worksheet

A one months rent had expired. Paid 5 months rent in advance on September 1,$1000

b. an inventory shows $130 of office supplies remaining.

3 prepare an October income statement, statement of owners equity and balance sheet.

4 from the worksheet journalize and post adjusting and closing entries.

5 prepare a post closing trial balance.