Question

PR 2-2A Journal entries and trial balance OBJ. 1, 2, 3, 4 On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: a. Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $40.000. b. Paid rent on office and equipment for the month, $6,000. c. Purchased supplies on account, $3,200. d. Paid creditor on account, $1,750. e. Earned fees, receiving cash, $18.250. f. Paid automobile expenses (including rental charge) for month, $1,880, and miscel laneous expenses, $120. g. Paid office salaries, $5,000. h. Determined that the cost of supplies used was $1,400. i. Withdrew cash for personal use, $2,000. Instructions 1. Journalize entries for transactions (a) through i), using the following account titles: Cash; Supplies; Accounts Payable; Sharon Matthews, Capital; Sharon Matthews, Draw- ing: Fees Earned; 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 January 31, 2019, 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 January 5. Determine the increase or decrease in owner's equity for January OBJ. 1, 2, 3, 4 an interior decorating business, Eco-Centric Designs e business PR 2-3A Journal entries and trial balance On be used

Answer 1

1.) Journal Entries

Transaction	Account Title and Explanation	Debit $	Credit $
a.	Cash	40,000
	Sharon Mathew's Capital		40,000
	(To record capital introduced)
b.	Rent expense	6,000
	Cash		6,000
	(To record rent paid)
c.	Supplies	3,200
	Accounts payable		3,200
	(To record supplies purchased on account)
d.	Accounts payable	1,750
	Cash		1,750
	(To record payment to creditor)
e.	Cash	18,250
	Fees earned		18,250
	(To record fees earned)
f.	Automobile expense	1,880
	Miscellaneous expense	420
	Cash		2,300
	(To record automobile and miscellaneous expense paid)
g.	Office salaries expense	5,000
	Cash		5,000
	(To record office salaries paid)
h.	Supplies expense	1,400
	Supplies		1,400
	(To record supplies expensed)
i.	Sharon Mathews- Drawings	2,000
	Cash		2,000
	(To record personal drawings)

2.) Ledger Accounts

CASH
Sharon Mathews- Capita	20,000	Rent expense	6,000
Fees earned	18,250	Accounts payable	1,750
		Automobile expense	1,880
		Miscellaneous expense	420
		Office salaries expense	5,000
		Sharon Mathews- Drawings	2,000
		Balance	21,200
	38,250		38,250

SUPPLIES
Accounts payable	3,200	Supplies expense	1,400
		Balance	1,800
	3,200		3,200

ACCOUNTS PAYABLE
Cash	1,750	Supplies	3,200
Balance	1,450
	3,200		3,200

SHARON MATHEWS- CAPITAL
		Cash	20,000

SHARON MATHEWS- DRAWINGS
Cash	2,000

FEES EARNED
		Cash	18,250

RENT EXPENSE
Cash	6,000

OFFICE SALARIES EXPENSE
Cash	5,000

AUTOMOBILE EXPENSE
Cash	1,880

MISCELLANEOUS EXPENSE
Cash	420

SUPPLIES EXPENSE
Supplies	1,400

3.) Unadjusted Trial Balance

Unadjusted Trial Balance For the month ending 31.1.2019
Particulars	Debit $	Credit $
Cash	21,200
Supplies	1,800
Accounts payable		1,450
Sharon Mathews- Capital		20,000
Sharon Mathews- Drawings	2,000
Fees earned		18,250
Rent expense	6,000
Office salaries expense	5,000
Automobile expense	1,880
Miscellaneous expense	420
Supplies expense	1,400
TOTAL	39,700	39,700

4.)

Statement of Income For the month ending 31.1.2019
(a.)	Fees earned		18,250
	Less: Expenses:
	Rent expense	6,000
	Office salaries expense	5,000
	Automobile expense	1,880
	Miscellaneous expense	420
	Supplies expense	1,400
(b.)	Total expense		14,700
(c.)	Net Income		3,550

5.)

Statement of Owner's Equity For the month ending 31.1.2019
Sharon Mathews- Capital	20,000
Add: Net Income	3,550
	23,550
Less: Sharon Mathews- Drawings	(2,000)
Increase or (Decrease) in Owner's Equity	21,550

Please rate positively if this helped you :)

All the best for your bright future.