Question: Roundhouse Realty acts as an agent in buying selling renting

Roundhouse Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on July 31, 2015, is shown below.
The following business transactions were completed by Roundhouse Realty during August 2015:
Aug. 2. Paid rent on office for month, $4,000.
3. Received cash from clients on account, $44,600.
5. Hired a new real estate agent, estimated income, $2,000/week. She starts next week.
17. Paid advertising expense, $5,500.
23. Paid creditors on account, $4,950.
31. Paid salaries and commissions for the month, $27,800.
31. Recorded revenue earned and billed to clients during the month, $83,000.
31. Purchased land for a future building site for $75,000, paying $10,000 in cash and giving a note payable for the remainder.
31. Withdrew cash for personal use, $5,000.
1. Record the August 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 August 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 August 31, 2015.

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  • CreatedSeptember 15, 2015
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