Orange Realty acts as an agent in buying, selling, renting, and managing real estate. The trial balance on October 31, 20Y4, is shown next.

The following business transactions were completed by Orange Realty during November 20Y4:

Nov. 1 Purchased office supplies on account, $1,050.

2 Paid rent on office for month, $2,000.

3 Received cash from clients on account, $22,300.

5 Paid annual insurance premiums, $2,850.

9 Returned a portion of the office supplies purchased on November 1, receiving full credit for their cost, $200.

17 Paid advertising expense, $2,750.

23 Paid creditors on account, $2,475.

29 Paid miscellaneous expenses, $250.

30 Paid automobile expense (including rental charges for an automobile), $750.

30 Discovered an error in computing a commission; received cash from the salesperson for the overpayment, $500.

30 Paid salaries and commissions for the month, $13,900.

30 Recorded revenue earned and billed to clients during the month, $41,500.

30 Purchased land for a future building site for $37,500, paying $5,000 in cash and giving a note payable for the remainder.

30 Paid dividends, $2,500.

30 Rented land purchased on November 30 to a local university for use as a parking lot for athletic events; received advance payment of $1,800.

Instructions

1. Record the November 1, 20Y4, balance of each account in the appropriate balance column of a T account, and write Balance to identify the opening amounts.

2. Journalize the transactions for November in a two-column journal.

3. Post the journal entries to the T accounts, placing the date to the left of each amount to identify the transaction. Determine the balances for all accounts.

4. Prepare a trial balance of the ledger as of November 30, 20Y4.

Transcribed Image Text:

ORANGE REALTY Trial Balance October 31, 20Y4 Debit Credit Balances Balances Cash 16,960 Accounts Receivable 34,900 Prepaid Insurance Office Supplies 3,600 800 Land Accounts Payable 4,960 Unearned Rent Notes Payable Common Stock 5,000 Retained Earnings 26,540 Dividends 12,800 Fees Earned 176,000 Salary and Commission Expense Rent Expense Advertising Expense Automobile Expense Miscellaneous Expense 112,000 14,000 11,440 5,120 880 212,500 212,500