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On October 1, 2018, 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, $40,000.   2 Paid rent on office and equipment for the month, $4,800.   3 Purchased supplies on account, $2,150.   4 Paid creditor on account, $1,100.   5 Earned sales commissions, receiving cash, $18,750.   6 Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $800.   7 Paid office salaries, $3,500.   8 Determined that the cost of supplies used was $1,300.   9 Paid dividends, $1,500.   1. Journalize entries for transactions Oct. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles. 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, 2018.

On October 1, 2018, 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, $40,000.   2 Paid rent on office and equipment for the month, $4,800.   3 Purchased supplies on account, $2,150.   4 Paid creditor on account, $1,100.   5 Earned sales commissions, receiving cash, $18,750.   6 Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $800.   7 Paid office salaries, $3,500.   8 Determined that the cost of supplies used was $1,300.   9 Paid dividends, $1,500.   1. Journalize entries for transactions Oct. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles. 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, 2018.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 9BE
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On October 1, 2018, 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, $40,000.
  2 Paid rent on office and equipment for the month, $4,800.
  3 Purchased supplies on account, $2,150.
  4 Paid creditor on account, $1,100.
  5 Earned sales commissions, receiving cash, $18,750.
  6 Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $800.
  7 Paid office salaries, $3,500.
  8 Determined that the cost of supplies used was $1,300.
  9 Paid dividends, $1,500.
 
1. Journalize entries for transactions Oct. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles.
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, 2018.
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.
 
CHART OF ACCOUNTS
Affordable Realty
General Ledger
  ASSETS
11 Cash
12 Supplies
  LIABILITIES
21 Accounts Payable
  EQUITY
31 Common Stock
33 Dividends
  REVENUE
41 Sales Commissions
  EXPENSES
51 Rent Expense
52 Office Salaries Expense
53 Automobile Expense
54 Supplies Expense
55 Miscellaneous Expense
4. Determine the following: a. Amount of total revenue recorded in the ledger.S b. Amount of total expenses recorded in the ledger S c. Amount of net income for October. S 5. Determine the increase or decrease in retained eamings for October. IS %24
Transcribed Image Text:4. Determine the following: a. Amount of total revenue recorded in the ledger.S b. Amount of total expenses recorded in the ledger S c. Amount of net income for October. S 5. Determine the increase or decrease in retained eamings for October. IS %24
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