1. Valley Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on July 31, 20Y7, follows:

   Valley Realty
   Unadjusted Trial Balance
   July 31, 20Y7
   	Account No.	Debit Balances	Credit Balances
   Cash	11	52,500
   Accounts Receivable	12	100,100
   Prepaid Insurance	13	12,600
   Office Supplies	14	2,800
   Land	16
   Accounts Payable	21		21,000
   Unearned Rent	22
   Notes Payable	23
   Cindy Getman, Capital	31		87,500
   Cindy Getman, Drawing	32	44,800
   Fees Earned	41		591,500
   Salary and Commission Expense	51	385,000
   Rent Expense	52	49,000
   Advertising Expense	53	32,200
   Automobile Expense	54	15,750
   Miscellaneous Expense	59	5,250
   		700,000	700,000

   The following business transactions were completed by Valley Realty during August 20Y7:

   Aug. 1.	Purchased office supplies on account, $3,150.
   2.	Paid rent on office for month, $7,200.
   3.	Received cash from clients on account, $83,900.
   5.	Paid insurance premiums, $12,000.
   9.	Returned a portion of the office supplies purchased on August 1, receiving full credit for their cost, $400.
   17.	Paid advertising expense, $8,000.
   23.	Paid creditors on account, $13,750.

   29.	Paid miscellaneous expenses, $1,700.
   30.	Paid automobile expense (including rental charges for an automobile), $2,500.
   31.	Discovered an error in computing a commission during July; received cash from the salesperson for the overpayment, $2,000.
   31.	Paid salaries and commissions for the month, $53,000.
   31.	Recorded revenue earned and billed to clients during the month, $183,500.
   31.	Purchased land for a future building site for $75,000, paying $7,500 in cash and giving a note payable for the remainder.
   31.	Withdrew cash for personal use, $1,000.
   31.	Rented land purchased on August 31 to a local university for use as a parking lot during football season (September, October, and November); received advance payment of $5,000.

   Required:

   Use the attached spreadsheet to complete parts 1 and 3. Click on the Spreadsheet icon to open and save the Excel file to your computer. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem.

   1. The August 1, 20Y7 balance of each account has been recorded in the appropriate balance column of the four-column account. The word Balance has been entered in the item section and a check mark () has been placed in the Posting Reference column.

   2. Journalize and insert the posting reference for the transactions for August in a two-column journal beginning on Page 18. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank.

   General Journal				Page 18
   Date	Description	Post. Ref.	Debit	Credit
   20Y7
   Aug. 1
   Aug. 2
   Aug. 3
   Aug. 5
   Aug. 9
   Aug. 17
   Aug. 23

   General Journal				Page 19
   Date	Description	Post. Ref.	Debit	Credit
   20Y7
   Aug. 29
   Aug. 30
   Aug. 31-Error
   Salary
   Revenue
   Land
   Withdraw
   Rent

   3. Post to the ledger, extending the account balance to the appropriate balance column after each posting.

   4. Using the balances from the spreadsheet, prepare an unadjusted trial balance of the ledger as of August 31, 20Y7.

   If an amount box does not require an entry, leave it blank.

   Valley Realty Unadjusted Trial Balance August 31, 20Y7
   	Debit Balances	Credit Balances

   5a. Assume that the August 31 transaction for Cindy Getman's cash withdrawal should have been $10,000. As a result, the unadjusted trial balance in (4) would

   5b. Assume that the August 31 transaction for Cindy Getman's cash withdrawal should have been $10,000. Journalize the correcting entry. If an amount box does not require an entry, leave it blank.

   General Journal				Page 19
   Date	Description	Post. Ref.	Debit	Credit
   20Y7
   Aug. 31

   5c. Assume that the August 31 transaction for Cindy Getman's cash withdrawal should have been $10,000. Is this error a transposition or slide?

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