Complete a Ledger Account with the requirments stated. Elite Realty acts as an a
ID: 2331811 • Letter: C
Question
Complete a Ledger Account with the requirments stated.
Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2018, follows:
Elite Realty
UNADJUSTED TRIAL BALANCE
March 31, 2018
1
Cash
25,100.00
2
Accounts Receivable
59,000.00
3
Prepaid Insurance
3,300.00
4
Office Supplies
2,500.00
5
Accounts Payable
13,700.00
6
Common Stock
10,000.00
7
Retained Earnings
37,400.00
8
Dividends
1,500.00
9
Fees Earned
226,400.00
10
Salary and Commission Expense
145,000.00
11
Rent Expense
25,000.00
12
Advertising Expense
17,600.00
13
Automobile Expense
4,400.00
14
Miscellaneous Expense
4,100.00
15
Totals
287,500.00
287,500.00
The following business transactions were completed by Elite Realty during April 2018. Enter the transactions through the 23rd on Page 18 of the two-column journal:
Enter the following transactions on Page 19 of the two-column journal:
Assume that the April 30 transaction for salaries and commissions should have been $19,100. (a) Why did the unadjusted trial balance in (4) balance? (b) Journalize the correcting entry on April 30. Use page 20. (Note: You will not be required to post this entry to the ledger at this time.) (c) Is this error a transposition or slide?
ASSETS 11 Cash 12 Accounts Receivable 13 Prepaid Insurance 14 Office Supplies 16 Land LIABILITIES 21 Accounts Payable 22 Unearned Rent 23 Notes Payable EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends REVENUE 41 Fees Earned EXPENSES 51 Salary and Commission Expense 52 Rent Expense 53 Advertising Expense 54 Automobile Expense 59 Miscellaneous ExpenseExplanation / Answer
2. Journalize the transactions for April in a two-column journal beginning on Page 18. JOURNAL Page 18 Date Account Debit Credit April 1, 2018 Rent Expense 5500 Cash 5500 April 2, 2018 Office supplies 2300 Accounts Payable 2300 April 5, 2018 Prepaid Insurance 5000 Cash 5000 April 10, 2018 Cash 52800 Accounts Receivable 52800 April 15, 2018 Land 203000 Cash 27000 Note payable 176000 April 17, 2018 Accounts payable 6050 Cash 6050 April 20, 2018 Accounts Payable 370 Office Supplies 370 April 23, 2018 Advertising Expense 4000 Cash 4000 JOURNAL Page 19 Date Account Debit Credit April 27, 2018 Cash 2500 Salary and Commission expense 2500 April 28, 2018 Automobile Expense 1800 Cash 1800 April 29, 2018 Miscellaneous Expense 1800 Cash 1800 April 30, 2018 Accounts Receivable 58000 Fees Earned 58000 April 30, 2018 Salary and Commission expense 11900 Cash 11900 April 30, 2018 Dividends 4000 Cash 4000 April 30, 2018 Cash 10000 Unearned rent 10000 1. Record the April 1, 2018, balance of each account in the appropriate balance column of a four-column account, type Balance in the item section, and select a check mark in the Posting Reference column. 3. Post to the ledger, extending the account balance to the appropriate balance column after each posting. Ledger Accounts Cash Date Account Post ref. Amount Balance Debit Credit Debit Credit April 1, 2018 Balance _/ 25100 April 1, 2018 5500 19600 April 5, 2018 5000 14600 April 10, 2018 52800 67400 April 15, 2018 27000 40400 April 17, 2018 6050 34350 April 23, 2018 4000 30350 April 27, 2018 2500 32850 April 28, 2018 1800 31050 April 29, 2018 1800 29250 April 30, 2018 11900 17350 April 30, 2018 4000 13350 April 30, 2018 10000 23350 Accounts Receivable Date Account Post ref. Amount Balance Debit Credit Debit Credit April 1, 2018 Balance _/ 59000 April 10, 2018 52800 6200 April 30, 2018 58000 64200 Prepaid Insurance Date Account Post ref. Amount Balance Debit Credit Debit Credit April 1, 2018 Balance _/ 3300 April 5, 2018 5000 8300 Office Supplies Date Account Post ref. Amount Balance Debit Credit Debit Credit April 1, 2018 Balance _/ 2500 April 2, 2018 2300 4800 April 20, 2018 370 4430 Accounts Payable Date Account Post ref. Amount Balance Debit Credit Debit Credit April 1, 2018 Balance _/ 13700 April 2, 2018 2300 16000 April 17, 2018 6050 9950 April 20, 2018 370 9580 Common Stock Date Account Post ref. Amount Balance Debit Credit Debit Credit April 1, 2018 Balance _/ 10000 Retained Earnings Date Account Post ref. Amount Balance Debit Credit Debit Credit April 1, 2018 Balance _/ 37400 Dividends Date Account Post ref. Amount Balance Debit Credit Debit Credit April 1, 2018 Balance _/ 1500 April 30, 2018 4000 5500 Fees Earned Date Account Post ref. Amount Balance Debit Credit Debit Credit April 1, 2018 Balance _/ 226400 April 30, 2018 58000 284400 Salary and commission Expense Date Account Post ref. Amount Balance Debit Credit Debit Credit April 1, 2018 Balance _/ 145000 April 27, 2018 2500 142500 April 30, 2018 11900 154400 Rent Expense Date Account Post ref. Amount Balance Debit Credit Debit Credit April 1, 2018 Balance _/ 25000 April 1, 2018 5500 30500 Advertising expense Date Account Post ref. Amount Balance Debit Credit Debit Credit April 1, 2018 Balance _/ 17600 April 23, 2018 4000 21600 Automobile Expense Date Account Post ref. Amount Balance Debit Credit Debit Credit April 1, 2018 Balance _/ 4400 April 28, 2018 1800 6200 Miscelleneous Expense Date Account Post ref. Amount Balance Debit Credit Debit Credit April 1, 2018 Balance _/ 4100 April 29, 2018 1800 5900 Land Date Account Post ref. Amount Balance Debit Credit Debit Credit April 15, 2018 203000 203000 Note Payable Date Account Post ref. Amount Balance Debit Credit Debit Credit April 15, 2018 176000 176000 Unearned rent Date Account Post ref. Amount Balance Debit Credit Debit Credit April 30, 2018 10000 10000 4. Prepare an unadjusted trial balance of the ledger as of April 30, 2018. Trial Balance As on April 30, 2018 Account Debit Credit Cash 23350 Accounts Receivable 64200 Prepaid Insurance 8300 Office Supplies 4430 Accounts Payable 9580 Common Stock 10000 Retained Earnings 37400 Dividends 5500 Fees Earned 284400 Salary and commission Expense 154400 Rent Expense 30500 Advertising expense 21600 Automobile Expense 6200 Miscelleneous Expense 5900 Land 203000 Note Payable 176000 Unearned rent 10000 TOTALS 527380 527380 5. Assume that the April 30 transaction for salaries and commissions should have been $19,100. (a) Why did the unadjusted trial balance in (4) balance? (b) Journalize the correcting entry on April 30. Use page 20. (Note: You will not be required to post this entry to the ledger at this time.) (c) Is this error a transposition or slide (a) The unadjusted trial balance in (4) is balanced, because the error is committed in debit and credit both sides with the same amount. Hence there was no difference in trial balance. (b) JOURNAL Page 20 Date Account Debit Credit April 30, 2018 Salary and Commission expense 7200 Cash 7200 © This is a transposition error, which is committed on both sides. Hence correcting entry will be made for both sides, with diffence in amount.
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