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On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: Jan. 1 Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $29,000. 2 Paid rent on office and equipment for the month, $2,250. 3 Purchased supplies on account, $2,300. 4 Paid creditor on account, $825. 5 Earned fees, receiving cash, $15,660. 6 Paid automobile expenses (including rental charge) for month, $1,620, and miscellaneous expenses, $830. 7 Paid office salaries, $2,200. 8 Determined that the cost of supplies used was $1,350. 9 Withdrew cash for personal use, $2,800. Required: 1. Journalize entries for transactions Jan. 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 January 31, 2019. 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 January. 5. Determine the increase or decrease in owner’s equity for January.

Respuesta :

anthougo

Answer:

Tri-City Realty

1. Journal Entries

Date    Accounts Titles       Debit       Credit

Jan. 1   Cash                       $29,000      

           Common stock                      $29,000

To record the transfer of cash for common stock.

Jan. 2  Rent expense       $2,250

           Cash                                      $2,250

Jan. 3  Supplies               $2,300

           Accounts payable                $2,300

To record purchase of supplies on account.

Jan. 4 Accounts payable   $825

          Cash                                       $825

To record the payment on account.

Jan. 5 Cash                 $15,660

           Fees Revenue                $15,660

To record earned fees.

Jan. 6 Automobile Exp. $1,620

          Miscellaneous exp. 830

          Cash                                 $2,450

To record the payment of automobile and miscellaneous expenses.

Jan. 7 Office Salaries     $2,200

          Cash                                  $2,200

To record the payment of office salaries.

Jan. 8 Supplies Expense $1,350

          Supplies                            $1,350

To record the cost of supplies used.

Jan. 9 Drawings            $2,800

          Cash                                 $2,800

To record cash withdrawn for personal use.

 

2.T-Accounts

Cash

Date    Accounts Titles       Debit       Credit

Jan. 1   Common stock       $29,000

Jan. 2  Rent expense                           $2,250

Jan. 4  Accounts payable                          825

Jan. 5  Fees Revenue          15,660

Jan. 6  Automobile expenses                1,620

           Miscellaneous expenses              830

Jan. 7  Office salaries                            2,200

Jan. 9  Drawings                                    2,800

Jan. 9  Balance                                   $34,135

           Totals                    $44,660  $44,660

Common Stock

Date    Accounts Titles       Debit       Credit

Jan. 1   Cash                                       $29,000

Rent Expense

Date    Accounts Titles       Debit       Credit

Jan. 2  Cash                       $2,250

Supplies

Date    Accounts Titles       Debit       Credit

Jan. 3  Accounts payable  $2,300

Jan. 8  Supplies expense                   $1,350

Jan. 9  Balance                                    $ 950

           Totals                     $2,300    $2,300

Accounts Payable

Date    Accounts Titles       Debit       Credit

Jan. 3  Supplies                                 $2,300

Jan. 4  Cash                        $825

Jan. 9  Balance                 $1,475

           Totals                   $2,300     $2,300

Fees Revenue

Date    Accounts Titles       Debit       Credit

Jan. 5   Cash                                      $15,660

Automobile Expenses

Date    Accounts Titles       Debit       Credit

Jan. 6  Cash                        $1,620

Miscellaneous Expenses

Date    Accounts Titles       Debit       Credit

Jan. 6  Cash                         $830

Office Salaries

Date    Accounts Titles       Debit       Credit

Jan. 7  Cash                      $2,200

Supplies Expense

Date    Accounts Titles       Debit       Credit

Jan. 8  Supplies                 $1,350

Drawings

Date    Accounts Titles       Debit       Credit

Jan. 9  Cash                      $2,800

3. Unadjusted Trial Balance as of January 31, 2019:

Accounts Titles         Debit       Credit

Cash                          $34,135

Supplies                          950

Common stock                         $29,000

Accounts payable                          1,475

Fees Revenue                            15,660

Rent expenses            2,250

Automobile expense   1,620

Miscellaneous expense 830

Office salaries             2,200

Supplies expense        1,350

Drawings                     2,800

Totals                       $46,135  $46,135

4a. Amount of total revenue recorded in the ledger:

= $15,660

b. Amount of total expenses recorded in the ledger:

= $8,250

c. Amount of net income for January:

= $7,410

5. Increase or decrease in owner's equity for January:

= $4,610

Explanation:

a) Total expenses:

Rent expenses            2,250

Automobile expense   1,620

Miscellaneous expense 830

Office salaries             2,200

Supplies expense        1,350

Total                          $8,250

b) Net Income:

Fees Revenue        $15,660

Total expenses          8,250

Net income               $7,410

c) Increase in Equity:

Net income             $7,410

Drawings                (2,800)

Increase =              $4,610

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