Kane Realty acts as an agent in buying selling renting
Kane Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on October 31, 2015, is shown below.
The following business transactions were completed by Kane Realty during November 2015:
Nov. 1. Paid rent on office for month, $3,000.
5. Hired a new secretary, $1,200 per week. She starts next week.
10. Received cash from clients on account, $25,000.
15. Purchased land for a future building site for $90,000, paying $10,000 in cash and giving a note payable for the remainder.
17. Paid creditors on account, $2,910.
23. Paid advertising expense, $1,250.
30. Recorded revenue earned and billed to clients during the month, $31,750.
30. Paid salaries and commissions for the month, $13,500.
30. Withdrew cash for personal use, $1,000.
1. Record the November 1, 2015, balance of each account in a three-column ledger, noting if it is a debit or credit. Write Balance in the item section, and place a check mark (✔) in the Posting Reference column.
2. Journalize the transactions for November in a two-column journal. Journal entry explanations may be omitted.
3. Post the journal entries to the ledger, extending the account balance and noting debit or credit after each posting of the balance.
4. Prepare an unadjusted trial balance as at November 30, 2015.
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