Question

In: Accounting

September 1, 201X: James Sousa invested $12,000 cash in the real estate agency along with $5,000...

September 1, 201X: James Sousa invested $12,000 cash in the real estate agency along with $5,000 of office equipment. Sept. 1: Rented and paid 5 months' rent in advance to Murray Property Management, $1,000. Sept. 1: Bought an automobile on account from Hyundai North, $19,000. Sept. 4: Purchased office supplies from Paper Company, for cash, $600. Sept. 5: Purchased additional office supplies from Paper Company, on account, $250. Sept. 6: Sold a house to Brendan Hue and collected a $11,000 commission. Sept. 8: Paid gas bill to Haffner Gas Co., $45. Sept. 15: Paid Rosie Petrillo, office secretary, $300. Sept. 17: Sold a building lot to Tropic Developers and earned a commission, $10,000; payment to be received on October 8. Sept. 20: James Sousa withdrew $4,000 from the business to pay personal expenses. Sept. 21: Sold a house to Suzanne Horngam and collected a $7,000 commission. Sept. 22: Paid gas bill, $80, to Haffner Gas Co. Sept. 24: Paid Hyundai North $800 to repair automobile. Sept. 30: Paid Rosie Petrillo, office secretary, $300. Sept. 30: paid Comcast September telephone bill, $330. Sept. 30: Received advertising bill for September, $900, from Chicago Times. The bill is to be paid on October 2. Required Work for September: 1. Journalize transactions and post to ledger accounts 2. Prepare a trial balance in the first two columns of the worksheet and complete the worksheet using the following adjustment data: a) One month's rent had expired. b) An inventory shows $100 of office supplies remaining. c) Depreciation on office equipment, $160. d) Depreciation on automobile, $210. 3. Prepare a Septmeber income statement, statement of owner's equity, and balance sheet. 4. From the worksheet, journalize, and post adjusting and closing entries (p. 3 of journal). 5. Prepare a post-closing trial balance.

Solutions

Expert Solution

1. Trial Balance
Credit $ Debit $
Own equity 17000 office equipmen 5000
HyundaiNorth (CR) 19000 rent 1000
commission 11000 automobile

19000

commision- tropic developers 10000 office supplies 850
commision 7000 gas bill 45
chicago times 900 office secretary 300
tropic developers (DR) 10000
withdrawal 4000
gas bill 80
repair 800
office secretary 300
telephone bill 330
Advertisement bill 900
cash 22295

65900 65900

2. Income Statement

Debit $ Credit $
rent 1000 commission 11000
office supplies 850 commision- tropic developers 10000
gas bill 45 commision 7000
office secretary 300
gas bill 80
repair 800
office secretary 300
telephone bill 330
Advertisement bill 900
rent (Aug) 1000
Depreciation
office equipmen 160
automobile 200
Profit 22035
28000 28000

3. Adjustment entries

Depreciation A/c Dr 370

To Office Equipment A/c 160

To Automobile A/c 200

Rent A/c Dr 1000

O/s Rent 1000

3. Balance Sheet

Liabilities $ Asset $
Own equity 13000 office equipmen 4840
HyundaiNorth (CR) 19000 automobile 18800
Profit 22035 tropic developers (DR) 10000
chicago times (payable) 900 cash 22295
o/s rent 1000
55935

55935


Related Solutions

The following information is related to Lexington Real Estate Agency.
The following information is related to Lexington Real Estate Agency.Oct.1Diane Lexington begins business as a real estate agent with a cash investment of $20,000 in exchange for common stock.2Hires an administrative assistant.3Purchases office furniture for $2,300, on account.6Sells a house and lot for N. Fennig; bills N. Fennig $3,600 for realty services performed.27Pays $850 on the balance related to the transaction of October 3.30Pays the administrative assistant $2,500 in salary for October.Prepare the debit-credit analysis for each transaction.(If no entry...
The majority of an insurance company's assets are invested in _____. ownership of real estate. mortgage....
The majority of an insurance company's assets are invested in _____. ownership of real estate. mortgage. corporate stocks and bonds. money market mutual funds
This information relates to Flounder Real Estate Agency. Oct. 1 Stockholders invest $33,540 in exchange for...
This information relates to Flounder Real Estate Agency. Oct. 1 Stockholders invest $33,540 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual salary of $37,680. 3 Buys office furniture for $3,710, on account. 6 Sells a house and lot for E. C. Roads; commissions due from Roads, $12,710 (not paid by Roads at this time). 10 Receives cash of $220 as commission for acting as rental agent renting an apartment. 27 Pays $650...
This information relates to McCall Real Estate Agency. Oct. 1 Stockholders invest $30,960 in exchange for...
This information relates to McCall Real Estate Agency. Oct. 1 Stockholders invest $30,960 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual salary of $39,960. 3 Buys office furniture for $3,630, on account. 6 Sells a house and lot for E. C. Roads; commissions due from Roads, $11,130 (not paid by Roads at this time). 10 Receives cash of $230 as commission for acting as rental agent renting an apartment. 27 Pays $640...
A real estate agency says that the mean home sales price in City A is the...
A real estate agency says that the mean home sales price in City A is the same as in City B. The mean home sales price for 30 homes in City A is ​$127,402. Assume the population standard deviation is ​$25,880. The mean home sales price for 30 homes in City B is ​$112, 276. Assume the population standard deviation is ​$27,112. At alpha =0.01​, is there enough evidence to reject the​ agency's claim? Find the critical​ value(s) and identify...
A real estate agency says that the mean home sales price in City A is the...
A real estate agency says that the mean home sales price in City A is the same as in City B. The mean home sales price for 20 homes in City A is ​$127 comma 462. Assume the population standard deviation is ​$25 comma 879. The mean home sales price for 20 homes in City B is ​$112 comma 289. Assume the population standard deviation is ​$27 comma 112. At alphaequals0.01​, is there enough evidence to reject the​ agency's claim?...
Days on the Market Dave Supien is a manager at a real estate agency in lower...
Days on the Market Dave Supien is a manager at a real estate agency in lower Delaware and has been looking at the current housing market. He established that the market conditions have been recovering during the past few years and wanted to continue his analysis. The following data shows the number of days a house has been on the market for Sussex County during the past year. 38 94 106 32 70 115 17 34 76 100 48 62...
(10 marks) Lou is an employee at a large real estate agency and is paid a...
Lou is an employee at a large real estate agency and is paid a salary and commission on sales. He has negotiated the following benefits with his employer: Provision of a car for work and personal use. Lou was provided with the car for the period 1 April 2019 to 31 March 2020. The leased car value was $22,000 at 1 April 2019, and the car had only been leased for a year at that time. Lou is required to...
October 1. S.Erickson invested $50,000 cash, a $16,000 pool equipment, and $12,000 of office equipment in...
October 1. S.Erickson invested $50,000 cash, a $16,000 pool equipment, and $12,000 of office equipment in the company. 2. The company paid $4,000 cash for five months’ rent. 3. The company purchased $1,620 of office supplies on credit from Todd’s Office Products. 5. The company paid $4,220 cash for one year’s premium on a property and liability insurance policy. 6. The company billed Deep End Co $4,800 for services performed in installing a new pool 8. The company paid $1,...
A company sold merchandise for cash on September 30th. The merchandise was sold for $12,000 and...
A company sold merchandise for cash on September 30th. The merchandise was sold for $12,000 and had a cost of $7,000. The tax rate is 5%. Show all of your work! Record the sale: Record the remittance of the sales taxes to the state on October 30th.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT