Question

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, $40,000.
	2	Paid rent on office and equipment for the month, $6,000.
	3	Purchased supplies on account, $3,200.
	4	Paid creditor on account, $1,750.
	5	Earned fees, receiving cash, $18,250.
	6	Paid automobile expenses (including rental charge) for month, $1,880, and miscellaneous expenses, $420.
	7	Paid office salaries, $5,000.
	8	Determined that the cost of supplies used was $1,400.
	9	Withdrew cash for personal use, $2,000.

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.

Chart of Accounts CHART OF ACCOUNTS Tri-City Realty General Ledger ASSETS REVENUE 41 Fees Earned 11 Cash 12 Supplies LIABILITIES 21 Accounts Payable EXPENSES 51 Rent Expense 52 Office Salaries Expense 53 Automobile Expense 54 Supplies Expense 55 Miscellaneous Expense EQUITY 31 Sharon Matthews, Capital 32 Sharon Matthews, Drawing

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. Unadjusted Trial Balance

4. Final Questions

Answer 1

Date Jan 1 Accounts Title and Explanation Cash Sharon Matthews, Capital Accounting Equation Post Ref. Debit Credit Assets Liabilties Equity $40,000 $40,000 Accounts Payable $1,750 Jan 3 Jan 4 Jan 1 Jan 5 $3,200 Cash $40,000 Jan 2 $18,250 Jan 4 Jan 6 Jan 7 Jan 9 $41,200 S6,000 $1,750 $2,300 $5,000 $2,000 Bal. $1.450 Jan 2 $6.000 Rent Expense Cash $6,000 Sharon Matthews, Capital Jan 1 $40.000 Bal. Jan 3 $3,200 Supplies Accounts Payable $3,200 Bal $40,000 Jan 4 $1,750 Ar Accounts Payable te D . Cash Supplies $3,200 Jan 8 Fees Earned Jan 5 $1,750 Jan 3 $1,400 $18,250 Jan 5 $18,250 Bal. $1,800 Bal $18.250 Cash Fees Earned $18.250 Rent Expense $6,000 Jan 6 Office Salaries Expense $5,000 Jan 2 Jan 7 Automobile Expense Miscellaneous Expense Cash $1,880 $420 $2,300 Bal $6,000 Bal. $5.000 Jan 7 $5.000 Office Salaries Expense Cash $5,000 Automobile Expense $1,880 Supplies Expense $1,400 Jan 6 Jan 8 Jan 8 $1,400 Bal $1,880 Bal. $1,400 Supplies Expense Supplies $1,400 Jan 9 Miscellaneous Expense $420 $2,000 Sharon Matthews, Drawing $2,000 Jan 6 Jan 9 Sharon Matthews, Drawing Cash $2,000 Bal. $420 Bal. $2,000 Tri-City Realty Unadjusted Trial Balance Loadiusted Tr January 31, 2019 1 Cash 2 Supplies 3 Accounts Payable 4 Sharon Matthews, Capital 5 Sharon Matthews, Drawing 6 Fees Earned 7 Rent Expense 8 Automobile Expense 9 Miscellaneous Expense 10 Office Salaries Expense 11 Supplies Expense 12 Total Debit Credit $41,200 $1,800 $1,450 $40,000 $2,000 $18.250 $6.000 $1,880 $420 $5,000 $1.400 $59,700 $59,700 a. Amount of total revenue recorded in the ledger. $18,250 b. Amount of total expenses recorded in the ledger $14.700 c. Amount of net income for January $3,550 5 Increase retained earnings for January $3,550