Question

On October 1, 20Y6, Jay Crowley established Affordable Realty, which completed the following transactions during the month:

Oct.	1	Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $29,700.
	2	Paid rent on office and equipment for the month, $2,250.
	3	Purchased supplies on account, $2,300.
	4	Paid creditor on account, $840.
	5	Earned sales commissions, receiving cash, $14,500.
	6	Paid automobile expenses (including rental charge) for month, $1,630, and miscellaneous expenses, $590.
	7	Paid office salaries, $2,000.
	8	Determined that the cost of supplies used was $1,350.
	9	Paid dividends, $2,300.

1.	Journalize entries for transactions Oct. 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 October 31, 20Y6.
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 October.
5.	Determine the increase or decrease in retained earnings for October.

Answer 1

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General 1 - Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Calibri - 11 - AA BI U - ->-A Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Filter Editing Find & Select Font Alignment Number Cells E G H I J K L M 1 F8 five ДА Affordable Realty 2 General Journal 3 Date Journal Debit 4 01-Oct Cash $ To Common Stock (Being amount transferred by Jay Crowley for use in the business) Credit 29,700.00 29,700.00 2 $ 2,250.00 02-Oct Rent Expenses To Cash (Being amount of Rent on Office and Equipment) 2,250.00 11 $ 2,300.00 13 03-Oct Supplies To Accounts Payable 2,300.00 14 15 (Being amount of supplies Purchased on account) 840.00 04-Oct| Accounts Payable To Cash 840.00 (Being amount of Sundry Creditors Paid) 20 21 05-OctCash *** #Sheet1 Sheet2 Sheet3 Ready $ 14,500.00 14 500 l 3O 100% + 0 12:40 OPAO ENG 03-02-2020 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General 1 - Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Calibri - 11 - AA BI U - ->-A Font Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Filter Editing Find & Select Alignment Number Cells F8 - E F G H I J K L M $ 14,500.00 B 05-Oct Cash To Sales Commission (Being amount of Sales commission earned) 14,500.00 1,630.00 590.00 06-OctAutomobile Expenses Miscellaneous Expenses To Cash (Being amount of Automoble Expenses and Miscellaneous Expenses) 2,220.00 2,000.00 07-Oct Salaries Expense To Cash (Being amount of Salaries Expense) 2,000.00 1,350.00 32 33 34 35 36 37 38 39 08-Oct Supplies Expenses To Supplies (Being amount of cost of supplies used) 1,350.00 2,300.00 09-OctDividend To Cash (Being amount of Dividend) 2,300.00 41 42 43 Cash A/C | Amount Particular Amount Particular Sheet1 Sheet2 Sheet3 Ready + BOU 100% 0 12:40 PAENG 2 03-02-2020 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General 1 - Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Calibri - 11 - AA BI U - ->-A Font Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Filter Editing Find & Select Alignment Number Cells F8 - А E F G H I J K L M Cash A/C Amount Particular To Common Stock To Commission Received $ Particular Amount 29,700.00 By Rent $ 2,250.00 14,500.00 By Accounts Payable $ 840.00 By Automobile Expenses $ 1,630.00 By Miscellaneos Expenses $ 590.00 By Salaries Expense $ 2,000.00 By Dividend $ 2,300.00 By Bal c/d $34,590.00 44,200.00 $ 44,200.00 - $ Particular To Balance C/d Total Common Stock Amount DR) Particular 29,700.00 By Cash $ 29,700.00 Total Amount (CR) $ 29,700.00 $ 29,700.00 Particular To Cash Rent A/S Amount( DR) Particular $ 2,250.00 By Bal c/d Amount (CR) $ 2,250.00 Total 2,250.00 Total $ 2,250.00 Supplies Sheet1 Sheet2 Sheet3 Ready OO 100% @ U 12:40 -ENG 02-0 SPA 03-02-2020 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General 1 - Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Calibri - 11 - AA BI U - ->-A Font Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells F8 A E F G H I J K L M Particular To Accounts Payable Supplies Amount( DR) Particular 2,300.00 By Supplies Expense By Balance C/d Amount (CR) $ 1,350.00 950.00 Total $ 2,300.00 Total $ 2,300.00 Particular To Cash To Balance C/d Accounts Payable Amount DR) Particular 840.00 By Supplies 1460 Amount (CR) $ 2,300.00 Total 2,300.00 Total $ 2,300.00 Particular To Cash Total Automobile Expenses Amount DR) Particular 1,630.00 By Bal c/d 1,630.00 Total Amount (CR) $ 1,630.00 $ 1,630.00 Particular To Cash Miscellaneous Expense Amount(DR) Particular 590.00 By Bal c/d Amount (CR) $ 590.00 Sheet1 Sheet2 Sheet30 Ke Ready + BOU 100% . OPAO ENG 0 12:40 03-02-2020 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General 1 - Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Calibri - 11 - AA BI U - ->-A Font Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Filter Editing Find & Select Alignment Number Cells F8 for А E I J K L M 82 83 84 Particular To Cash Miscellaneous Expense Amount DR) Particular 590.00 By Bal c/d Amount (CR) $ 590.00 Total 590.00 Total $ 590.00 Particular To Cash Salaries Expense Amount( DR) Particular 2,000.00 By Bal c/d Amount (CR) $ 2,000.00 Total $ 2,000.00 Total $ 2,000.00 Particular To Cash Dividend Amount( DR) Particular $ 2,300.00 By Bal c/d Amount (CR) $ 2,300.00 98 99 Total 2,300.00 Total $ 2,300.00 100 102 103 104 Particular To Balc/d Total Sheet1 Sheet2 Commission Received Amount(DR) Particular $ 14,500.00 To Cash $ 14,500.00 Total Amount (CR) $ 14,500.00 $ 14,500.00 Sheet3 Ready BOU 100% + 0 12:40 gA ENG 03-02-2020 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General 1 - Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Calibri - 11 - AA BI U - ->-A Font Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Filter Editing Find & Select Alignment Number Cells - F8 А E E F G H I J K L M 106 107 C D Supplies Expense Amount DR) Particular 1,350.00 By Balance C/d 1,350.00 Total Particular To Supplies Total 108 Amount (CR) $ 1,350.00 $ 1,350.00 109 110 111 112 113 114 Affordable Realty Trial Balance October 31, 20Y6. Debit $ $ Credit 34,590.00 950.00 116 117 $ 1,460.00 29,700.00 118 119 2,300.00 120 Account Head Cash Supplies Accounts payable Common Stock Dividend Commission Supplies Expense Rent Expense Salaries Expense Automobile Expense Miscellaneous Expenses 14,500.00 121 122 $ 123 124 1,350.00 2,250.00 2,000.00 1,630.00 590.00 127 Total $ 45,660.00 $ 45,660.00 128 Affordable noalt Sheet1 Sheet2 Sheet3 Ready + BOU 100% 0 12:40 PAENG 2 03-02-2020 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General 1 - Wrap Text Merge & Center 1 - 3 LE Paste Format Painter Clipboard Autosum * Calibri - 11 - AA BI U - ->-A Font Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells F8 - А D E G H I J K L M Total $ 45,660.00 $ 45,660.00 127 128 129 130 Affordable Realty Income Statement 131 132 133 14,500.00 134 135 136 137 138 139 Revenue Commission Received Expenses Supplies Expense Rent Expense Salaries Expense Automobile Expense Miscellaneous Expenses Total Expenses Net Income 1,350.00 2,250.00 2,000.00 1,630.00 590.00 $ 140 $ 7,820.00 6,680.00 142 145 Common Stock Net Income Dividend Statement of Owner's Equity 29,700.00 6,680.00 $ (2,300.00) $ 34,080.00 146 147 148 149 150 Ke Ready Sheet1 Sheet2 Sheet30 3O + 1 2 9 * @ @ @ 100% 0 - 12:40 -ENG 020 03-02-2020 SPA