Question

Journal Entries and Trail Balance the 25.000 On January 1, 2019, Sharon Matthews established hi-ty Realty, which completed the transactions a. Sharon Matthews transferred cash from a personal bank account to a ccount to be used for the bu s b. Pald rent on office and equipment for the month $4.50 Purchased Succes on account 51.350 d. Pald creditor on account, $500 e. Carned fees, receiving cash, 520,750. L. Paid automobile expenses (including rental charge) for month $1.270, w miscellaneous 9. Pald office salaries $2.650 Determined that the cost of woollessed 750 L. Withdrew cash for personal use. 51,220. Required: 1. Journal entries for transactions (a) through o n chronological order the Expense: Automobile Expenses Supplies Expenses Miscellaneous Expense for a compound transaction m ust be does not eve n HOO O DOO

Answer 1

Tri City Realty Journal Enteries Trans. Particulars a. Cash a/c Dr. To Sharon Mathews, Capital (Capital Introduced) Debit in $ Credit in 25000 25000 b. 4570 Rent Expense a/c Dr. To Cash (Rent paid for Office and Equipment) 4570 1350 Supplies a/c Dr. To Accounts Payable (Supplies purchased on account) 1350 d. Dr. 500 Accounts Payable a/c To Cash (Creditors paid in cash) 500 Dr. 20750 Cash a/c To Fees Earned (Fees earned in cash) 20750 f. 1270 850 Automobile Expense a/c Dr. Miscellaneous Expense a/c Dr. To Cash (Expenses paid) 2120 2660 Office Salaries Expense a/c Dr. To Cash (Salaries paid in cash) 2660 h. Dr. 750 Supplies Expense a/c To Supplies (Supplies expensed) 750 1220 Sharon Mathews, Withdrawals To Cash (Cash withdrawn for personal use) 1220

Cash Sharon Mathews, Capital Fees Earned Automobile Expense 1270 Bal. 1270 1270 1270 Cash a/c 25000 Rent Expense 20750 Accounts Payable Automobile Expense Miscellaneous Expense Office Salaries Expense Sharon Mathews, Withdrawals Bal. 45750 4570 500 1270 850 2660 1220 34680 45750 Cash Miscellaneous Expense 850 Bal. 850 850 850 25000 Cash Bal. Sharon Mathews, Capital Cash 25000 25000 Office Salaries Expense 2660 Bal. 2660 2660 2660 25000 Rent Expense 4570 Cash Supplies Supplies Expense 750 Bal. 750 Bal. 4570 4570 750 750 4570 Accounts Payable Supplies 1350 Supplies Expense Cash Sharon Mathews, Withdrawals 1220 Bal. 1220 750 600 1350 Bal. 1220 1220 1350 1350 Cash Bal Accounts Payable 500 Supplies 850 1350 1350 20750 Fees Earned Cash 20750 20750 Bal 20750

Trial Balance For the period ending January 31 Particulars Cash Supplies Accounts Payable Sharon Mathews, Capital Sharon Mathews, Withdrawals Fees Earned Rent Expense Automobile Expense Miscellaneous Expense Office Salaries Expense Supplies Expense Totals Debit in $ Credit in $ 34680 600 850 25000 1220 20750 4570 1270 850 2660 750 46600 46600 20750 Statement of Income For the period ending January 31 Fees Earned Less: Rent Expense Automobile Expense Miscellaneous Expense Office Salaries Expense Supplies Expense Net Income 4570 1270 850 2660 750 10100 10650 Total Revenue = 20750 Total Expenses = 10100 Net Income = 10650 Increase in Owner;s Equity = 25000 + 10650 - 1220 = 34430