On August 1, 2016, Bill Hudson established Heritage Realty, which completed the following transactions during the month: Investment from owner in exchange for common stock, $30,000. Paid rent on office and equipment for the month, $3,250. Purchased supplies on account, $2,150. Paid creditor on account, $875. Earned sales commissions, receiving cash, $14,440. Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $650. Paid office salaries, $3,000. Determined that the cost of supplies used was $1,300. Paid Cash Dividends, $2,500. Instructions Journalize entries for transactions (a) through (i), using the following account titles: Cash; Supplies; Accounts Payable; Common Stock; Dividends; Sales Commissions; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. Explanations may be omitted. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance. Prepare an unadjusted trial balance as of August 31, 2016
On August 1, 2016, Bill Hudson established Heritage Realty, which completed the following transactions during the month: Investment from owner in exchange for common stock, $30,000. Paid rent on office and equipment for the month, $3,250. Purchased supplies on account, $2,150. Paid creditor on account, $875. Earned sales commissions, receiving cash, $14,440. Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $650. Paid office salaries, $3,000. Determined that the cost of supplies used was $1,300. Paid Cash Dividends, $2,500. Instructions Journalize entries for transactions (a) through (i), using the following account titles: Cash; Supplies; Accounts Payable; Common Stock; Dividends; Sales Commissions; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. Explanations may be omitted. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance. Prepare an unadjusted trial balance as of August 31, 2016
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 55P
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Question
On August 1, 2016, Bill Hudson established Heritage Realty, which completed the following transactions during the month:
- Investment from owner in exchange for common stock, $30,000.
- Paid rent on office and equipment for the month, $3,250.
- Purchased supplies on account, $2,150.
- Paid creditor on account, $875.
- Earned sales commissions, receiving cash, $14,440.
- Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $650.
- Paid office salaries, $3,000.
- Determined that the cost of supplies used was $1,300.
- Paid Cash Dividends, $2,500.
Instructions
- Journalize entries for transactions (a) through (i), using the following account titles: Cash; Supplies; Accounts Payable; Common Stock; Dividends; Sales Commissions; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. Explanations may be omitted.
- Prepare T accounts, using the account titles in (1).
Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance. - Prepare an unadjusted
trial balance as of August 31, 2016. - Determine the following:
- Amount of total revenue recorded in the ledger.
- Amount of total expenses recorded in the ledger.
- Amount of net income for August.
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