The following business transactions were completed by Fickle Realty during August 2006:
Aug. 1. Purchased office supplies on account, $1,760.
2. Paid rent on office for month, $2,500.
3. Received cash from clients on account, $38,720.
5. Paid annual insurance premiums, $3,600.
9. Returned a portion of the office supplies purchased on August 1, receiving full credit for their cost, $240.
17. Paid advertising expense, $3,450.
23. Paid creditors on account, $2,670.
29. Paid miscellaneous expenses, $350.
30. Paid automobile expense (including rental charges for an automobile), $1,360.
31. Discovered an error in computing a commission; received cash from the salesperson for the overpayment, $800.
31. Paid salaries and commissions for the month, $17,400.
31. Recorded revenue earned and billed to clients during the month, $41,900.
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, $2,500.
31. Rented land purchased on August 31 to local university for use as a parking lot during football season (September, October, and November), received advance payment of $1,500.

Instructions
1. Record the August 1 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 August 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 a trial balance of the ledger as of August 31, 2006

Transcribed Image Text:

Fickle Realty acts as an agent in buying, selling, renting, and managing real estate. The account balances at the end of July 2006 are as follows: 11 Cash 31,200 12 Accounts Receivable 13 Prepaid Insurance 14 Office Supplies 16 Land 45,750 2,800 1,000 21 Accounts Payable 5,200 22 Unearned Rent 23 Notes Payable 31 Larissa Sanchez, Capital 32 Larissa Sanchez, Drawing 39,700 16,000 41 Fees Earned 224,000 51 Salary and Commission Expense 52 Rent Expense 53 Advertising Expense 54 Automobile Expense 59 Miscellaneous Expense 133,000 17,500 14,300 6,400 950 268,900 268,900 Fickle Realty acts as an agent in buying, selling, renting, and managing real estate. The account balances at the end of July 2006 are as follows: 11 Cash 31,200 12 Accounts Receivable 13 Prepaid Insurance 14 Office Supplies 16 Land 45,750 2,800 1,000 21 Accounts Payable 5,200 22 Unearned Rent 23 Notes Payable 31 Larissa Sanchez, Capital 32 Larissa Sanchez, Drawing 39,700 16,000 41 Fees Earned 224,000 51 Salary and Commission Expense 52 Rent Expense 53 Advertising Expense 54 Automobile Expense 59 Miscellaneous Expense 133,000 17,500 14,300 6,400 950 268,900 268,900

Answer rating: 100% (QA)

Step 1 The entry is given as Step 2 Fickle Realty Journal Enteries Trial Balance Date Particulars ... View the full answer