Question

On October 1, 20Y6, Jay Crowley established Affordable Realty, which completed the following transactions during the month: Oct. 1 2 Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $40,000 Paid rent on office and equipment for the month, $4,800. 3. Purchased supplies on account, $2,150. Paid creditor on account, $1,100. Earned sales commissions, receiving cash, 518,750. Pald automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $800. Paid office salaries, $3,500. 4 5 6 7

Answer 1

Credit Debit $ 40,000 Date Account title Oct.1 Cash Common Stock (To record owners capital in business) 4a. Total Revenue 4b. Total Expenses 4c. Net Income $ $ $ 18,750 11,980 6,770 $ 40,000 $ 4,800 Oct.2 Rent Expense Cash (To record payment of rent) $ 4,800 Unadjusted Trial Balance Account Info Debit Credit Cash $ 45,470 Supplies $ 850 Accounts Payable $ 1,050 Common Stock $ 40,000 Dividends $ 1,500 Sales Commissions $ 18,750 Rent Expenses $ 4,800 Office Salaries Expense $ 3,500 Automobile Expense $ 1,580 Supplies Expense $ 1,300 Miscellaneous Expense $ 800 Total $ 59,800 $ 59,800 $ 5 Increase or decrease in retained earnings: Beginning Retained Earnings $ Dividends -$ 1,500 Net Income $ 6,770 Ending Retained Earnings $ 5,270 $ 2,150 Oct.3 Supplies Accounts Payable (To record the purchase supplies on $ 2,150 $ 1,100 Oct.4 Accounts Payable Cash (To record cash payment to creditors) $ 1,100 $ 18,750 Oct.5 Cash Sales Commissions (To record billed for service performed) *Cash=$40,000-4,800-1,100+18,750-2,380-3,500-1,500=$45,470 *Supplies=$2,150-1,300-$850 *A/P=$2,150-1,100-$1,050 $ 18,750 $ $ 1,580 800 Oct.6 Automobile Expenses Miscellaneous Expenses Cash (To record expenses *Total Revenue - Sales Commissions=$18,750. *Total Expenses=($4,800+3,500+1,580+1,300+800]=$11,980. $ 2,380 $ 3,500 Oct.7 Office Salaries Expense Cash (To record salaries expense S 3,500 $ 1,300 Oct.8 Supplies Expense Supplies (To record hired a secretary salary) $ 1,300 $ 1,500 Oct.9 Dividends Cash (To record dividends paid) $ 1,500

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