In: Accounting
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.
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 |