Question

0 PR 2-2A Journal entries and trial balance Obj. 1, 2, 3, 4 On October 1, 20Y6, 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. Paid dividends, $1,500 Instructions i. 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.

Answer 1

1 Affortable Realty JOURNAL ENTRIES Particular Cash A/C To Common Stock A/C (Being Cash Transferred by Jay Crowdy in Exchange of Stock) а Debit ($) Credit ($) 40000 40000 b 4800 Rent Expenses A/C To Cash Being Office and Equiptment Rent for the oct month paid) 4800 с 2150 Supplies A/C To Account Payable A/C ( Being Supplies Purchased on Credit) 2150 d 1100 Account Payable A/c To Cash A/C Being Paid to Creditors) 1100 e 18750 Cash A/C To Sales Commissions Being Sales Commission Earned) 18750 f 1580 8001 Automobile Expenses A/C Miscellaneous Expenses A/C To Cash A/C Being Expenses Paid) 2380 3500 Office Salary Expenses A/C To Cash A/C Being Office salary paid ) 3500 h 1300 Supplies Expenses A/C To Supplies A/C Being Supplies used) 1300 i 1500 Dividents A/C To Cash A/C Being Divident Paid) 1500

2. "T" ACCOUNTS COMMON STOCK A/C CASH 40000 4800 1100 CASH A/C Common stock 40000 Rent Expenses Account Payable Sales Commission 18750 Automobile Expenses Miscellaneous Expenses Office Salary Expenses Dividents Balance $45,470.00 1580 800 3500 1500 RENT EXPENSES A/C 4800 Cash SUPPLIES A/C Accounts Payable 2150 Supplies Expenses Balance $850.00 1300 ACCOUNTS PAYABLE A/C SALES COMMISSION A/C 2150 Cash 18750 Supplies cash 1100 Balance $1,050.00 AUTOMOBILE EXPENSES A/C 1580 MISCELLANEOUS EXPENSES A/C Cash 800 Cash SUPPLIES EXPENSES A/C 1300 DIVIDENTS A/C 1500 Supplies cash OFFICE SALARY EXPENSES A/C 3500 Cash