Question

accounting

0 Show 3 D Wed 9:51 PM ini's Kindle for Mac - Accounting Page 91 of 1254 the amount entered in the accounts, place the appropriate letter to identify the transaction. 2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance. 3. Prepare an unadjusted trial balance for Kimberly Manis, Architect, as of January 31, 2016. 4. Determine the net income or net loss for January. PR 2-2A Journal entries and trial balance OBJ. 1, 2, 3, 4 On August 1, 2016, Bill Hudson established Heritage Realty, which completed the fol- lowing transactions during the month: a. Bill Hudson transferred cash from a personal bank account to an account to be used for the business, $30.000 b. Paid rent on office and equipment to the month, $3,250. c. Purchased supplies on account, $2,150. d. Paid creditor on account, $875. e. Earned sales commissions, receiving cash. $14,440. f. Paid automobile expenses (including rental charge) for month, $1,580, and miscel laneous expenses, $650. g. Paid office salaries, $3,000. h. Determined that the cost of supplies used was $1,300. i. Withdrew cash for personal use, $2,500. Instructions 1. Journalive entries for transactions (a) through (i), using the following account titles: Cash; Supplies; Accounts Payable; Bill Hudson, Capital; Bill Hudson, Drawing: Sales Commissions: Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. Explanations may be omitted 2. 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. 3. Prepare an unadjusted trial balance as of August 31, 2016. 4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for August. 5. Determine the increase or decrease in owner's equity for August

Answer 1

1) Journal Entries:
Date	Account Title	Debit$	Credit $
a	Cash	30000
	Bill Hudson Capital		30000
	(being capital contributed)
b	Rent Expense	3250
	Cash		3250
	(rent of office and equipment paid)
c	Supplies	2150
	Accounts Payable		2150
	(supplies purchased on account0
d	Accounts Payable	875
	cash		875
	(being creditors paid )
e	Cash	14440
	Sales commission		14440
	(Sales commission earned in cash)
f	Automobile expense	1580
	Miscellaneous Exp.	650
	Cash		2230
	(being Automobile & miscel. Exp. Paid)
g	Salaries expense	3000
	Cash		3000
	(being office salaries paid)
h	Supplies exp.	1300
	Supplies		1300
	(Supplies expenses booked)
i	Bill Hudson Drawing	2500
	Cash		2500
	(being withdrawal made for personal use)

2) T-Accounts:
DEBIT	AMOUNT $	CREDIT	AMOUNT$
Cash a/c
a	30000	b	3250
e	14440	d	875
		f	1580
		f	650
		g	3000
		i	2500
		CB	32585
	44440	Total	44440
Bill Hudson Capital a/c
		a	30000
Rent expense a/c
b	3250
Supplies a/c
c	2150	h	1300
		CB	850
Accounts payable a/c
d	875	c	2150
CB	1275
Sales Commissions a/c
		e	14440
Automobile exp. a/c
f	1580
Miscellaneous exp. a/c
f	650
Salaries expense a/c
g	3000
Supplies expense a/c
h	1300
Bill Hudson Drawing a/c
i	2500

3) Unadjusted trial balance:
Accounts Title	Debit$	Credit $
Cash	32585
Bill Hudson		30000
Rent expense	3250
Supplies	850
AP		1275
Sales Commission		14440
Automobile exp.	1580
Miscel. Exp.	650
Salaries exp.	3000
Supplies exp.	1300
Bill hudson Drawing	2500
Total	45715	45715
4)
a: Total revenue in the ledger : $14440
b: Total expenses in the ledger :
Rent	3250
Automobile	1580
Miscel.	650
salaries	3000
supplies	1300
Total Expenses	9780
c: Net Income for August :
Total revenue	14440
Less: Total expenses	9780
Net Income	4660
5) the increase or decrease in Owner's equity for August:
Capital	30000
add: Net Income	4660
Less: Drawing	-2500
In Increase in Owner's equity	32160