Question

On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: Jan. 1 Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $31,000. 2 Paid rent on office and equipment for the month, $2,850. 3 Purchased supplies on account, $2,350. 4 Paid creditor on account, $850. 5 Earned fees, receiving cash, $14,920. 6 Paid automobile expenses (including rental charge) for month, $1,640, and miscellaneous expenses, $770. 7 Paid office salaries, $3,200. 8 Determined that the cost of supplies used was $1,500. 9 Withdrew cash for personal use, $2,800. Required: 1. Journalize entries for transactions Jan. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles. 2. Post the journal entries to the T accounts, selecting the appropriate date 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

Answer 1

Answer 1.
Journal Entry
Date	Particulars	Dr. Amt.	Cr. Amt.
1	Cash	31,000.00
	Sharon Matthews, Capital		31,000.00
	(record the capital introduced)
2	Rent Expense	2,850.00
	Cash		2,850.00
	(record the rent paid)
3	Supplies	2,350.00
	Accounts Payable		2,350.00
	(record the supplies purchased)
4	Accounts Payable	850.00
	Cash		850.00
	(record the cash paid)
5	Cash	14,920.00
	Fees earned		14,920.00
	(Record the fees earned)
6	Automobile Expenses	1,640.00
	Miscellaneous Expense	770.00
	Cash		2,410.00
	(record the automobile & misc expense)
7	Salaries Expense	3,200.00
	Cash		3,200.00
	(Record the salaries expense)
8	Supplies Expense	1,500.00
	Supplies		1,500.00
	(record the supplies expense)
9	Sharon Matthews, Withdrawl	2,800.00
	Cash		2,800.00
	(record the cash withdrawl)

Answer 2.
Cash					Supplies					Accounts Payable
1	31,000.00	2,850.00	2		3	2,350.00	1,500.00	8		4	850.00	2,350.00	3
5	14,920.00	850.00	4
		2,410.00	6
		3,200.00	7
		2,800.00	9
End. Bal.	33,810.00				End. Bal.	850.00				End. Bal.		1,500.00
Sharon Matthews, Capital					Sharon Matthews, Withdrawl
		31,000.00	1		9	2,800.00
End. Bal.		31,000.00			End. Bal.	2,800.00
Fees Earned					Automobile Expense					Rent Expense
		14,920.00	5		6	1,640.00				2	2,850.00
End. Bal.		14,920.00			End. Bal.	1,640.00				End. Bal.	2,850.00
Misc. Expense					Salaries Expense					Supplies Expense
6	770.00				7	3,200.00				8	1,500.00
End. Bal.	770.00				End. Bal.	3,200.00				End. Bal.	1,500.00

Answer 3.
Trial Balance
As on Jan 31, 2019
Accounts Title	Debits	Credits
Cash	33,810.00
Supplies	850.00
Accounts Payable		1,500.00
Sharon Matthews, Capital		31,000.00
Sharon Matthews, Withdrawl	2,800.00
Fees Earned		14,920.00
Automobile Expense	1,640.00
Rent Expense	2,850.00
Misc. Expense	770.00
Salaries Expense	3,200.00
Supplies Expense	1,500.00
Total	47,420.00	47,420.00
		-
Answer 4.
a. Amount of total revenue recorded	14,920.00
b. Amount of total expenses recorded
Automobile Expense	1,640.00
Rent Expense	2,850.00
Misc. Expense	770.00
Salaries Expense	3,200.00
Supplies Expense	1,500.00
Total expense	9,960.00
c. Amount of net income $14,920 - $9,960	4,960.00
Answer 5.
Increase (Decrease) in Owner's Equity
Net Income	4,960.00
Sharon Matthews, Withdrawl	(2,800.00)
Increase (Decrease) in Owner's Equity	2,160.00