Question

Oct.1: Purchased additional office supplies on account from Paper Co., $850. Oct.2: Paid Chicago times advertising bill for September, $900. Oct. 3: Sold a house to Helen Baker and collected a commission of $7,300. Oct. 6: Paid gas bill to Haffner Gas Co., $29. Oct. 8: Collected commission from Tropic Developers for sale of building lot on September 17, $10,000. Oct. 12: Paid $530 to Long Realtors Assoc. to send employees to realtors' workshop. Oct. 15: Paid Rosie Petrillo, office secretary, $300. Oct. 17: Sold a house to Gary Schneider and earned a commission of $2,900. Commission to be received on November 10. Oct. 18: Sold a building lot to Lombardi Builders and collected a commission of $4,500. Oct. 22: Sent a check to Heritage Charities for $65 to help sponsor a local road race to aid the poor. (This amount is not to be considered an advertising expense; it is a business expense and is posted to Miscellaneous Expense.) Oct. 24: Paid Hyundai North $620 for repairs to automobile due to accident. Oct. 28: James Sousa withdrew $2,200 from the business to pay personal expenses. Oct. 30: Paid Rosie Petrillo, office secretary, $300. Oct. 30: Paid Comcast telephone bill, $480. Oct. 30: Advertising bill from Chicago Times for October, $1,300. The bill is to be paid on November 2. Required Work for October: 1. Journalize transactions in a general journal (p.4) and post to ledger accounts. 2. Prepare a trial balance in the first two columns of a blank, fold-out worksheet located at the end of your textbook at the end of your textbook and complete the worksheet using the following data: a) One month's rent had expired. Paid 5 months' rent in advance on September 1, $1,000. b) An inventory shows $130 of office supplies remaining. c) Depreciation on office equipment, $160. d) Depreciation on automobile, $210. 3. Prepare an October income statement, statement of owner's equity, and balance sheet. 4. From the worksheet, journalize and post adjusting and closing entries (p. 6 of journal). 5. Prepare a post-closing trial balance. Please Help!!!

Answer 1

Journal Entry

SOUSA REALITY
General journal for the month of Oct., 20X1
Date	Account Title	Debit	Credit
Oct.1	Office Supplies	850
	To Accounts Payable		850
Oct.2	Accounts Payable	900
	To Cash		900
Oct.3	Cash	7300
	To Commission Revenue		7300
Oct.6	Vehicle Expenses	29
	To Cash		29
Oct.8	Cash	10000
	To Accounts Receivable		10000
Oct.12	Training Expenses	530
	To Cash		530
Oct.15	Salary Expense	300
	To Cash		300
Oct.17	Accounts Receivable	2900
	To Commission Revenue		2900
Oct.18	Cash	4500
	To Commission Revenue		4500
Oct.22	Misc.Expense	65
	To Cash		65
Oct.24	Repairs to vehicles	620
	To Cash		620
Oct.28	James Sousa, Drwings	2200
	To Cash		2200
Oct.30	Telephone Expenses	480
	To Cash		480
Oct.30	Advertising Expenses	1300
	To Accounts Payable		1300
SOUSA REALITY
Adjusting Journal Entries for the month of Oct., 20X1
Date	Account Title	Debit	Credit
Oct.30	Rent Expense	200
	To Prepaid Rent		200
Oct.30	Office Supplies Expense	820
	To Office Supplies		820
Oct.30	Depreciation Expense	370
	To Acc.Depr - -Office Eqpt.		160
	To Acc.Depr. - Vehicle		210

Income Statement

SOUSA REALITY
Income statement
for the month ended October 31, 20X1
Commission Revenue	14700
Expenses:
Vehicle expenses	29
Salary Expense	300
Repairs to vehicle	620
Telephone Expense	480
Advertising Expense	1300
Rent Expense	200
Training Expenses	530
Office Supplies Expense	820
Depreciation Expense	370
Misc.Expense	65
Total Expenses	4714
Net income	9986

Statement of Equity

SOUSA REALITY
Statement of owners' equity
for the month ended October 31, 20X1
Balance as at October 1, 20X1	36925
Add: Net income for October, 20X1	9986
Less: Drawing during October, 20X1	2200
Balance as at October 31, 20X1	44711

Balance Sheet:

SOUSA REALITY
Balance Sheet
as at October 31, 20x1
Assets
Cash		39821
Acounts Receivable		2900
Office Supplies		130
Prepaid Rent		600
Office Equipment	5000
Accumulated Depreciation - Office Equipment	320	4680
Vehicle	19000
Accumulated Depreciation - Vehicle	420	18580
Total Assets		66711
Liabilities and equity
Accounts Payable		22000
James Sousa, Capital		44711
Total Liabilities and equity		66711

Cash					Offie Equipment
Date	Debit	Credit	balance		Date	Debit	Credit	balance
Oct.1			23145		Oct.1			5000
Oct.2		900	22245					5000
Oct.3	7300		29545					5000
Oct.6		29	29516					5000
Oct.8	10000		39516		Accounts Receivable
Oct.12		530	38986		Date	Debit	Credit	balance
Oct.15		300	38686		Oct.1			10000
Oct.18	4500		43186		Oct.8		10000	0
Oct.22		65	43121		Oct.17	2900		2900
Oct.24		620	42501
Oct.28		2200	40301		Vehicle
Oct.30		480	39821		Date	Debit	Credit	balance
Prepaid Rent					Oct.1			19000
Date	Debit	Credit	balance					19000
Oct.1			800
Oct.30		200	600
Office Supplies					Accounts Payable
Date	Debit	Credit	balance		Date	Debit	Credit	balance
Oct.1			100		Oct.1			20750
Oct.1	850		950		Oct.1		850	21600
Oct.30		820	130		Oct.2	900		20700
					Oct.30		1300	22000
James Sousa, Capital					Commission Revenue
Date	Debit	Credit	balance		Date	Debit	Credit	balance
Oct.1			36925		Oct.3		7300	7300
			36925		Oct.17		2900	10200
			36925		Oct.18		4500	14700
Vehicle Expenses					Salary Expense
Date	Debit	Credit	balance		Date	Debit	Credit	balance
Oct.6	29		29		Oct.15	300		300
			29					300
			29					300
James Sousa, Drawings					Repairs to vehicle
Date	Debit	Credit	balance		Date	Debit	Credit	balance
Oct.28	2200		2200		Oct.24	620		620
			2200					620
Telephone Expenses					Advertising Expenses
Date	Debit	Credit	balance		Date	Debit	Credit	balance
Oct.30	480		480		Oct.30	1300		1300
			480					1300
Training Expenses					Misc.Expese
Date	Debit	Credit	balance		Date	Debit	Credit	balance
Oct.12	530		530		Oct.22	65		65
Rent Expense					Ofice Supplies Expense
Date	Debit	Credit	balance		Date	Debit	Credit	balance
Oct.30	200		200		Oct.30	820		820
Depreciation Expense					Acc. Depr. - Office Eqpt.
Date	Debit	Credit	balance		Date	Debit	Credit	balance
Oct.30	370		370		Oct.30		160	160
								160
Acc. Depr - Vehicle
Date	Debit	Credit	balance
Oct.30		210	210
			210