Question

Following is the chart of accounts of Sanchez Realty Company:
Assets
111 Cash
113 Accounts Receivable
115 Supplies
117 Prepaid Insurance
124 Office Furniture
Liabilities
221 Accounts Payable
Owner’s Equity
311 T. Sanchez, Capital
312 T. Sanchez, Drawing
Revenue
411 Professional Fees
Expenses
511 Salary Expense
512 Rent Expense
513 Advertising Expense
514 Utilities Expense

Sanchez completed the following transactions during April (the first month of business):
April 1 Sanchez deposited $ 20,000 in a bank account in the name of the business.
5 Sold realty services on account to R. Miller, $ 7,500, Inv. No. 100.
7 Paid a bill for advertising, $ 250, Ck. No. 1001.
8 Bought supplies on account from Taylor Supply, $ 420, Inv. No. 2340.
9 Performed realty services for clients for cash, $ 2,530.
15 Received and paid the bill for utilities, $ 280, Ck. No. 1002.
17 Bought a desk and chair from Lewis Furniture, $ 1,800, paying $ 300 in cash and placing the balance on account, Ck. No. 1003.
20 Bought liability insurance for one year, $ 1,800, Ck. No. 1004.
21 Paid the rent for the current month, $ 1,000, Ck. No. 1005.
25 Paid on account to Taylor Supply, $ 420, for supplies purchased on April 8, Ck. No. 1006.
27 Received $ 7,500 from R. Miller for services performed on April 5.
28 Received and paid the telephone bill for the month, $ 150, Ck. No. 1007.
29 Paid the salary of the office assistant, $ 1,030, Ck. No. 1008.
30 Sanchez withdrew cash for his personal use, $ 3,000, Ck. No. 1009.

Required
1. Journalize the transactions for April in the general journal, beginning on page 1.
2. Post the entries to the general ledger accounts.
3. Prepare a trial balance as of April 30, 20—.
4. Prepare an income statement for the month ended April 30, 20—.
5. Prepare a statement of owner’s equity for the month ended April 30, 20—.
6. Prepare a balance sheet as of April 30, 20—.



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  • CreatedOctober 21, 2014
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