Journal entries and trial balanceElite Realty acts as an agent in buying, selling, renting, and managing real
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Journal entries and trial balanceElite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March Y follows:Elite RealtyUNADJUSTED TRIAL BALANCEMarch YACCOUNT TITLEDEBITCREDITCashAccounts ReceivablePrepaid InsuranceOffice SuppliesAccounts Payable Alberto Harnish, Capital Alberto Harnish, DrawingFees Earned Salary and Commission ExpenseRent ExpenseAdvertising ExpenseAutomobile ExpenseMiscellaneous ExpenseTotalsThe following business transactions were completed by Elite Realty during April Y Enter the transactions through the rd on Page of the twocolumn journal:AprPaid rent on office for month, $Purchased office supplies on account, $Paid annual insurance premiums, $Received cash from clients on account, $Purchased land for a future building site for $ paying $ in cash and giving a note payable for the remainderPaid creditors on account, $Returned a portion of the office supplies purchased on April receiving full credit for their cost, $Paid advertising expense, $Enter the following transactions on Page of the twocolumn journal:AprDiscovered an error in computing a commission; received cash from the salesperson for the overpayment, $Paid automobile expense including rental charges for an automobile $Paid miscellaneous expenses, $Recorded revenue earned and billed to clients during the month, $Paid salaries and commissions for the month, $Withdrew cash for personal use, $Rented land purchased on April to local merchants association for use as a parking lot in May and June, during a street rebuilding program; received advance payment of $Required:Record the April Y balance of each account in the appropriate balance column of a fourcolumn account, type Balance in the item section, and select a check mark in the Posting Reference columnJournalize the transactions for April in a twocolumn journal beginning on Page Post to the ledger, extending the account balance to the appropriate balance column after each postingPrepare an unadjusted trial balance of the ledger as of April YAssume that the April transaction for salaries and commissions should have been $a Why did the unadjusted trial balance in balance? b Journalize the correcting entry on April
Related Book For
Financial Accounting
ISBN: 978-1305088436
14th edition
Authors: Carl S. Warren, Jim Reeve, Jonathan Duchac
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