Question

Journal entries and trial balance Instructions Chart of Accounts 1 Journal T Accounts Instructions On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: 1 4 5 6 Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $30,500. Paid rent on office and equipment for the month, $2,650. Purchased supplies on account, $2,200. Paid creditor on account, $900. Earned fees, receiving cash, $14,660. Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $570 Paid office salaries. $2.000 7

Answer 1

Credit Credit Date Jan. 1 Debit $30,500 Date Jan. 6 General Journal Automobile Expenses Miscellaneous Expenses Debit $1,580 $570 $30,500 Jan. 2 $2,650 Cash $2,150 $2,650 Jan. 7 $2,000 Jan. 3 General Journal Cash Sharon Matthews, Capital Rent Expense Cash Supplies Accounts Payable Accounts Payable Cash Cash Fees Earned $2,200 $2,000 $2,200 Jan. 8 $1,150 Salaries Expense Cash Supplies Expense Supplies Sharon Matthews, Drawings Cash Jan. 4 $900 $1,150 $900 Jan. 9 $2,600 Jan. 5 $14,660 $2,600 $14,660 2) Jan. 1 Jan. 5 Sharon Matthews, Capital $30,500 Jan. 1 $30,500 End. Bal. Automobile Expense Jan. 6 $1,580 End. Bal. $1,580 Cash $30,500 $2,650 $14,660 $900 $2,150 $2,000 $2,600 $34,860 Jan. 2 Jan. 4 Jan. 6 Jan. 7 Jan. 9 Sharon Matthews, Drawings Jan. 9 $2,600 End. Bal. $2,600 Miscellaneous Expense Jan. 6 $570 End. Bal. $570 End. Bal.

3) 4) a) Amount of total revenue recorded in the ledger $14,660 [Refe: Fee Earned ledger] Credit b) Tri-City Realty Unadjusted Trial Balance January 31, 2019 Accounts Titles Debit Cash $34,860 Supplies $1,050 Accounts Payable Sharon Matthews, Capital Sharon Matthews, Drawings $2,600 Fees Earned Rent Expense $2,650 Automobile Expense $1,580 Miscellaneous Expense $570 Salaries Expense $2,000 Supplies Expense $1,150 Totals $46,460 Rent Expense Automobile Expense Miscellaneous Expense Salaries Expense Supplies Expense Amount of total expenses recorded $2,650 $1,580 $570 $2,000 $1,150 $7,950 $1,300 $30,500 $14,660 c) Amount of net income for January Capital invested by owner in January Add: Net income for January Less: Drawings by owner in January Net increase in owner's equity for January $6,710 ($14660 - $7950] [Revenue - Total Expenses] $30,500 $7,950 (Ref: Part-4c] -$2,600 $35,850 $46,460