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

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.

Answer 1

post ref. 11 Date Description 01-Jan Cash Sharon Matthews - Capital (Introduced capital) Accounting equation Debit Credit Assets Liabilities Equity $40,000 $40,000 $40,000 $40,000 31 $6,000 -$6,000 02-Jan Rent expense Cash (rent expnese paid) $6,000 $6,000 $3,200 $3,200 03-Jan Supplies Account payable (supplies purchased on account) 12 21 $3,200 $3,200 L $1,750 - $1,750 04-Jan Account payable Cash (Cash paid on account) 211 11 L $1,750 $1,750 $18,250 $18,250 05-Jan Cash Fees earned (fees earned) 11 41 $18,250 $18,250 53 06-Jan Automobile expense Miscellanous expenses $1,880 $420 -$1,880 - $4201 L 55 11 L $2,300 Cash $2,300 (cash paid for expenses) 07-Jan Office salaries expense $5,000 $5,000| 52 11 Cash $5,000 $5,000 (office salary expense booked)

Date Accounting equation Assets Liabilities Equity Description post ref. Debit Credit $5,000 $5,000 07-Jan Office salaries expense Cash (office salary expense booked) 52 11 $5,000 $5,000 54 $1,400 -$1,400 08-Jan Supplies expense Supplies (cost of supplies booked) 12 $1,400 $1,400 09-Jan Sharon Matthews, Drawing $2,000 -$2,000 Cash $2,000 $2,000 (Drawings made) Cash 01-Jan $40,000 05-Jan $18,250 02-Jan 04-Jan: 06-Jan 07-Jan 09-Jan $6,000 $1,750 $2,300 $5,000 $2,000 Bal. $41,200 03-Jan Supplies $3,200 $1,800 08-Jan: $1,400 Bal.

Account payable 04-Jan $1,750 03-Jan Bal. $3,200 $1,450 Sharon Matthews, Capital | 01-Jan $40,000 Sharon Matthews, Drawings 09-Jan $2,000 Fees earned 05-Jan $18,250 Rent expense $6,000 02-Jan Office salaries expense $5,000 07-Jan Automobile expense $1,880 06-Jan Supplies expense 08-Jan $1,400 Mis. Expense 06-Jan $4201

Unadjusted Trial balance Account titles 1 Cash 2 supplies 3 Account payables 4 Sharon Matthews - Capital 5 Sharon Matthews - Drawing 6 Fees Earned 7 Rent Expense 8 Office Salaries Expenses 9 Automobile Expense 10 Supplies Expense 11 Miscelleneous expense 12 Total Debit Credit $41,200 $1,800 $1,450 $40,000 $2,000 $18,250 $6,000 $5,000 $1,880 $1,400 $4201 $59,700 $59,700 4 a) The amount of Total revenue recorded in the ledger b) The amount of total Expesens recorded in the ledger c) Amount of Net income for January $18,250 $14,700 $3,550 5 Increase or Decrease in Owner's equity for January $1,550 Increase (3,550-2000)