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, $29,000.
	2	Paid rent on office and equipment for the month, $2,350.
	3	Purchased supplies on account, $2,250.
	4	Paid creditor on account, $800.
	5	Earned fees, receiving cash, $14,640.
	6	Paid automobile expenses (including rental charge) for month, $1,520, and miscellaneous expenses, $890.
	7	Paid office salaries, $2,000.
	8	Determined that the cost of supplies used was $1,100.
	9	Withdrew cash for personal use, $2,600.

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

journal Entries						T- Accounts				Unadjusted Trial Balance
date	Explanation	debit	credit			cash				explanation	Debit	credit
1-Jan	cash	29000			capital	29000	rent expense	2350		cash	33480
	capital		29000		fees earned	14640	accounts payable	800		supplies	1150
							Autompbile expense	1520		accounts payable		1450
2-Jan	rent expense	2350					miscellenous expense	890		capital		29000
	cash		2350				salaries expense	2000		fees earned		14640
							drawings	2600		rent expense	2350
3-Jan	supplies	2250					balance	33480		Automobile expense	1520
	accounts payable		2250		total	43640	total	43640		miscelleneous expense	890
										supplies expense	1100
4-Jan	accounts payable	800				capital				drawings	2600
	cash		800		balance	29000	cash	29000			2000
										total	45090	45090
5-Jan	cash	14640				rent expense
	fees earned		14640		cash	2350	balance	2350		Amount of total revenue recorded		14640
										amount of total expenses recorded		5860
6-Jan	Autompbile expense	1520				supplies				amount of net income		8780
	miscellenous expense	890			accounts payable	2250	supplies expense	1100
	cash		2410				balance	1150		Inncrease or decrease in owners equity
					total	2250	total	2250		capital		29000
7-Jan	salaries expense	2000								add net income		8780
	cash		2000			accounts payable				less drawings		2600
					cash	800	supplies	2250		owners equity at month end		35180
8-Jan	supplies expense	1100			balance	1450				less beginning balane		29000
	supplies		1100		total	2250	total	2250		Inncrease or decrease in owners equity		6180
9-Jan	drawings	2600				fees earned
	cash		2600		balance	14640	cash	14640
						Automobile expense
					cash	1520	balance	1520
						miscelleneous expense
					cash	890	balance	890
						supplies expense
					supplies	1100	balance	1100
						drawings
					cash	2600	balance	2600
						salaries expense
					cash	2000	balance	2000