Question

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.

Answer 1

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