Passport Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on October 31, 2008, is shown at the top of the following page.

The following business transactions were completed by Passport Realty during November 2008:

Nov. 1. Paid rent on office for month, $5,000.

2. Purchased office supplies on account, $1,750.

5. Paid annual insurance premiums, $4,800.

10. Received cash from clients on account, $52,000.

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, $7,750.

Nov. 20. Returned a portion of the office supplies purchased on November 2, receiving full credit for their cost, $250
23. Paid advertising expense, $2,100.
27. Discovered an error in computing a commission; received cash from the salesperson for the overpayment, $700.
28. Paid automobile expense (including rental charges for an automobile), $1,500.
29. Paid miscellaneous expenses, $450.
30. Recorded revenue earned and billed to clients during the month, $48,400.
30. Paid salaries and commissions for the month, $25,000.
30. Withdrew cash for personal use, $8,000.
30. Rented land purchased on November 15 to local merchants association for use as a parking lot in December and January, during a street rebuilding program; received advance payment of $2,500.

Instructions
1. Record the November 1, 2008, balance of each account in the appropriate balance column of a four-column account, 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 to the ledger, extending the account balance to the appropriate balance column after each posting.
4. Prepare an unadjusted trial balance of the ledger as of November 30,2008.

Transcribed Image Text:

Passport Realty Unadjusted Trial Balance October 31, 2008 Debit Balances lances Credit ..26,300 13,020 32,980 260,000 1 306,000 306,000