Question

TE PR 2-2A Journal entries and trial balance 5,770 On October 1, 2016, Jay Crowley established Affordable Realty, which completed the following transactions during the month: a. 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 b. Paid rent on office and equipment for the month, $4,800. c Purchased supplies on account, $2,150. d. Paid creditor on account $1,100. e. Earned sales commissions, receiving cash, $18,750. f. Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $800. 9. Paid office salaries, $3,500. h. Determined that the cost of supplies used was $1,300. i. Paid dividends, $1,500. Instructions 1. Journalize entries for transactions (a) through (i), using the following account titles: Cash, Sup- plies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. Explanations may be omitted. 2. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter 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.

just 3-5!

Answer 1

3.Unadjusted Trial Balance

Trial Balance
October 31, 20Y6
Particulars	Debit	Credit
Common stock		$40,000
Cash	$45,470
Rent Expense	$4,800
Supplies Expense	$2,150
Accounts Payable		$1,050
Sales commissions		$18,750
Dividends	$1,500
Office Salaries Expense	$3,500
Miscellaneous Expense	$800
Automobile Expense	$1,580
	$59,800	$59,800

4.

Income Statement
October 31, 20Y6
Revenues
Sales Commissions Income	$18,750
		$18,750
Expenses
Rent Expenses	$4,800
Office Salaries Expense	$3,500
Supplies Expense	$1,300
Miscellaneous Expense	$800
Automobile Expense	$1,580
Total Expenses		$11,980
Net Income for the month		$6,770

a. Amount of total revenue = $18,750

b. Amount of total expenses = $11,980

c. Amount of net income = $6,770

5.

Statement of Retained Earnings
October 31, 20Y6
Retained earnings, December 1	$0
Add: Net Income for the Month	$6,770
	$6,770
Less: Dividend Paid	$1,500
Retained earnings, October 31	$5,270

Increase in retained earnings = $5,270.