Question

Journal Entries and Trial Balance On October 1, 2018, 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, $25,000. b. Paid rent on office and equipment for the month, $4,510. c. Purchased supplies on account, $1,330. d. Paid creditor on account, $490. e. Earned sales commissions, receiving cash, $20,500. f. Pald automobile expenses (including rental charge) for month, $1,250, and miscellaneous expenses, $840. 9. Paid office salaries, $2,620. n. Determined that the cost of supplies used was $740. 1. Pald dividends, $1,210. Required: 1. Joumalize entries for transactions (a) through C) (in chronological order), using the following account titles: Cash, Supplies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. For a compound transaction, an amount box does not require an entry, leave it blank Cash 25,000 Common Stock 25.000 1.330 b Accounts Payable 1.330 Cash -

Answer 1

a Cash $ 25,000 Common Stock $ 25,000 b Rent expense Cash $ 4,510 $ 4,510 c Supplies $ 1,330 Account payable $ 1,330 $ 490 d Account payable Cash $ 490 $ 20,500 e Cash Sales Commission $ 20,500 f Automobile expense Miscellaneous expense Cash $ 1,250 $ 840 $ 2,090 $ 2,620 g Office Salaries expense Cash $ 2,620 $ 740 h Supplies expense Supplies $ 740 i Dividends $ 1,210 Cash $ 1,210

Cash $ 25,000 $ 20,500 Supplies 1,330 h a с $ $ 740 e b d f $ $ $ $ $ 4,510 490 2,090 2,620 1,210 Bal $ 590 8 i Common Stock Bal (a) $25,000 Bal $ 34,580 Sale Commission Bal(e) $ 20,500 Accounts Payable $ 490 d С $ 1,330 Rent expense Bal (b) $ 4,510 Bal $ 840 Office Salaries expense $ 2,620 Miscellaneous expense Bal (f) $ 840 Bal (8) Automobile expense $ 1,250 Bal (f) Supplies expense Bal (h) $ 740 Bal (1) Dividends $ 1,210

Trial Balance $ 34,580 $ 590 $ 840 $ 25,000 $ 20,500 Cash Supplies Accounts Payable Common Stock Sale Commission Rent expense Office Salaries expense Miscellaneous expense Automobile expense Supplies expense Dividends $ $ $ $ $ $ 4,510 2,620 840 1,250 740 1,210 $ 46,340 $ 46,340

Total revenue = Sales commission

= 20,500

Total Expense = 4510 + 2620 + 840 + 1250 + 740

= 9,960

Net Income = Revenue - Expense

= 20500 - 9960

= 10540

Retained earnings = Net income - Dividend

= 10540 - 1210

= 9,330 (increase)