Question

On October 1, 2015, Cody Doerr established Mudcat Realty, which completed the following transactions during the month:
a. Cody Doerr transferred cash from a personal bank account to an account to be used for the business, $17,500.
b. Purchased supplies on account, $1,000.
c. Earned sales commissions, receiving cash, $12,250.
d. Paid rent on office and equipment for the month, $3,800.
e. Paid creditor on account, $600.
f. Withdrew cash for personal use, $3,000.
g. Bought a new flat screen television for his bedroom, using a company cheque, $1,000.
h. Paid automobile expenses (including rental charge) for month, $1,500, and miscellaneous expenses, $400.
i. Paid office salaries, $3,100.
Instructions
1. Journalize entries for transactions (a) through (i), using the following account titles: Cash; Supplies; Accounts Payable; Cody Doerr, Capital; Cody Doerr, Withdrawals; Sales Commissions; Rent Expense; Office Salaries Expense; Automobile Expense; Miscellaneous Expense. Journal entry 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.
3. Prepare an unadjusted trial balance as at October 31, 2015.
4. Determine the following:
a. Amount of total revenue recorded in the ledger.
b. Amount of total expenses recorded in the ledger.
c. Amount of net income for October.


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  • CreatedSeptember 15, 2015
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