Question

nstructio 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, $1,830, 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. oumaize entries for transactions Jan 1 through 9 Refer to the Chart of Accounts for exact wording of account taies Check My Work

Answer 1

DATE	particulars	debit	credit
Jan 1, 2019	bank account .............dr To Sharon's capital	40000
			40000
Jan 2	rent account ...............dr To bank account	6000
			6000
Jan 3	purchases account.........dr To creditors account	3200
			3200
Jan 4	creditors account............dr To bank account	1750
			1750
Jan 5	Cash account................dr To Service revenue	18250
			18250
Jan 6	Automobile expenses account ....dr miscellanous expenses ...............dr To cash account	1880
		420
			2300
Jan 7	Salaries account........................dr To cash account	5000
			5000
Jan 8	not a transaction hence no entry shall be written	-	-
Jan 9	Drawings account .....................dr To cash account	2000
			2000

bank account

date	particulars	amount	date	particulars	amount
Jan 1	Sharon's capital account	40000	Jan 2	rent account	6000
			4	creditors	1750
				balance c/d	32250
		40000			40000

Sharon's capital account

date	particulars	amount	date	particulars	amount
			Jan 1	bank account	40000

cash account

date	particulars	amount	date	particulars	amount
Jan 5	Service revenue account	18250	Jan 6	automobile expense account	1880
			"	miscellaneous expense a/c	420
			7	salary account	5000
			9	Drawings	2000
				balance c/d	8950
		18250			18250

purchases account

date	particulars	amount	date	particulars	amount
jan 3	creditors account	3200

rent account

date	particulars	amount	date	particulars	amount
Jan 2	bank account	6000

creditors account

date	particulars	amount	date	particulars	amount
jan 4	bank account	1750	Jan 3	purchases account	3200
	balance c/d	1450
		3200			3200

service revenue account

date	particulars	amount	date	particulars	amount
			Jan 5	cash account	18250

automobile expenses account

date	particulars	amount	date	particulars	amount
Jan 6	cash account	1880

miscellanoues expenses account

date	particulars	amount	date	particulars	amount
Jan 6	cash account	420

salary account

date	particulars	amount	date	particulars	amount
Jan 7	cash account	5000

drawings account

date	particulars	amount	date	particulars	amount
Jan 9	cash account	2000

TRIAL BALANCE

S. No.	Particulars	debit	credit
1	cash account	8950
2	capital account		40000
3	creditors account		1450
4	bank account	32250
5	drawings account	2000
6	automobile expenses account	1880
7	miscellanoues expenses account	420
8	salary account	5000
9	service revenue		18250
10	rent account	6000
11	purchases	3200
	TOTAL	59700	59700

Amount of total revenue = 18250

Amount of total expenses = 16500(1880+420+5000+6000+3200)

Amount of net income = 18250 -16500 = 1750

since the question does not ask for a profit and loss account it is suggested to go with this method.