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.
Instructions
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 (œ”) 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.

Transcribed Image Text:

Roundhouse Realty Unadjusted Trial Balance July 31, 2015 Debit Credit Balances Balances 1010 Cash 1020 Accounts Receivable 1040 Office Supplies 1060 Land 2010 Accounts Payable 2030 Notes Payable 3010 Jeremiah Rilkoff, Capital 3020 Jeremih Rilkoff, Withdrawals 4010 Fees Earned 5010 Salaries and Commission Expense 5020 Rent Expense 5030 Advertising Expense 33,920 57,200 1,600 9,920 38,480 25,600 344,800 224,000 28,00D 22,880 393,200 393,200