Sousa Realty Review the accounting cycle twice Make a chart of account for Sousa
ID: 2398994 • Letter: S
Question
Sousa Realty
Review the accounting cycle twice
Make a chart of account for Sousa Realty
Assets
111 cash Revenue
112 accounts receivable 411 Commission Earned
114 prepaid rent Expenses
115 office equipment 511 Rent Expense
121 office supplies 512 Salaries expense
122 accumulated depreciation, office equipment 513 Gas Expense
123 automobile 514 Repairs Expense
124 accumulated depreciation, automobile 515 Telephone Expense
Liabilities 516 Advertising Expense
211 accounts payable 517 Office Supplies Expense
212 salaries payable 518 Depreciation Expense, Office equip
Owner’s equity 519 Depreciation expense, automobile
311 James Sousa, Capital 524 Miscellaneous Expense
312 James Sousa, Withdrawals
313 Income summary
On September 1, 201x James Sousa opened a real estate office called Sousa Realty. The following transactions were completed for the month of September.
September 1, James Sousa invested $12000 cash in the real estate agency along with $5000 of office supplies.
September 1, rented and paid 5 months, rent in advance to Murray Property Management $1000
September 1, bought an automobile on account from Hyundai North $19000
September 4 Purchased office supplies from paper company for cash $600
September 5 purchased additional office supplies from paper company, on account $250
September 6, sold a house to Hue and collected a $11000 commission.
September 8, paid gas bill to Haffner gas go $45
September 15 paid Rosie, office secretary $300
September 17 sold a building lot to tropical and earned a commission $10000: payment to be received on October 6.
September 20, James Sousa withdrew $4000 from the business to pay personal expenses.
September 21 sold a house to Suzanne and collected $7000 commission.
September 22 paid gas bill $80
September 24 paid Hyundia North $800 to repair automobile
September 30 paid Rosie, office secretary $300
September 30 paid Comcast September telephone bill $330
September 30 received advertising bill September $900 from Chicago times, the bill is to be paid on October 2
Required work for September
1 Journalize transaction and post to the ledger accounts.
2 prepare a trial balance in the first two columns of the worksheet and complete the worksheet using the fallowing 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 September income statement, statement of owner’s equity, and balance sheet
4 from the worksheet, journalize and post adjusting and closing entries.
5 prepare a post closing trial balance.
During October, Sousa Realty completed these transactions.
October 1 purchased additional supplies on account from paper co. $850
October 2 paid Chicago times advertising bill for September $900 Chicago times
October 3 sold a house to Helen and collected a commission of $7300
October 6 paid gas bill to Heffner gas co, $29
October 8 collected commission from tropic for sale building lot on September 17 $10000
October 12 paid $530 to long realtor’s assoc. to send employees to realtor’s workshop
Oct. 15 paid Rosie, office secretary $300
Oct. 17 sold a house to Gary and earned a commission of $2900. Commission to be received on November 10
Oct. 18 sold a building lot to Lombardi and collected a commission of $4500
Oct. 22 sent a check to heritage for $65 to help sponsor local road race (this amount is not considered an advertising expense, it is a business expense and is posted to miscellaneous expense)
Oct. 24 paid Hyundai North $620 for repairs to automobile due to accident.
Oct. 28 James Sousa withdrew $2200 from the business to pay personal expenses.
Oct. 30 paid Rosie, Office secretary $300
Oct. 30 paid Comcast telephone bill $480
Oct. 30 advertising bill from Chicago times for October $1300. The bill is to be paid on November 2.
Required work for October.
1 journalize transactions in a general journal and post to ledger accounts.
2 prepare a trial balance in the first two columns of a blank fold-out worksheet
A one month’s rent had expired. Paid 5 months rent in advance on September 1,$1000
b. an inventory shows $130 of office supplies remaining.
3 prepare an October income statement, statement of owner’s equity and balance sheet.
4 from the worksheet journalize and post adjusting and closing entries.
5 prepare a post closing trial balance.
Explanation / Answer
Post closing general ledger
Journal entries for the month of September Accounts Title Debit Credit 1-Sep Cash $12,000 Office Supplies $5,000 James Sousa, Capital $17,000 1-Sep Prepaid Rent $1,000 Cash $1,000 1-Sep Automobile $19,000 Accounts payable $19,000 4-Sep Office Supplies $600 Cash $600 5-Sep Office Supplies $250 Accounts Payable $250 6-Sep Cash $11,000 Commission Earned $11,000 8-Sep Gas Expenses $45 Cash $45 15-Sep Salaries Expenses $300 Cash $300 17-Sep Accounts receivable $10,000 Commission Earned $10,000 20-Sep James Sousa, Withdrawl $4,000 Cash $4,000 21-Sep Cash $7,000 Commission Earned $7,000 22-Sep Gas expenses $80 Cash $80 24-Sep Repair expenses $800 Cash $800 30-Sep Salaries Expenses $300 Cash $300 30-Sep Telephone Expenses $330 Cash $330 30-Sep Advertising Expenses $900 Accounts payable $900 Adjusting Journal entries for the month of September 30-Sep Rent Expenses $200 Prepaid Rent $200 30-Sep Office Supplies Expenses $750 Office Supplies $750 30-Sep Depreciation expense, Office Equipment $160 Accu. Depreciation, Office Equipment $160 30-Sep Depreciation expense, Automobile $210 Accu. Depreciation, Automobile $210 Trial Balance for the month of September Acc. No. Particulars Amount 111 Cash $22,545 121 Office Supplies $100 114 Prepaid Rent $800 112 Accounts receivable $10,000 115 Office Equipment $5,000 122 Accumulated Depreciation, Office Equipmnet $160 123 Automobile $19,000 124 Accumulated Depreciation, Automobile $210 211 Accounts Payable $20,150 311 James Sousa, Capital $17,000 312 James Sousa, Withdrawls $4,000 411 Commission Earned $28,000 511 Rent Expense $200 512 Salaries Expenses $600 513 Gas Expenses $125 514 Repair Expenses $800 515 Telephone Expenses $330 516 Advertising Expenses $900 517 Office Supplies Expenses $750 518 Depreciation expense, Office Equipment $160 519 Depreciation expense, Automobile $210 $65,520 $65,520 Income Statement for the month of September Particulars Amount Commission Earned $28,000 Less: Expenses Rent Expense $200 Salaries Expenses $600 Gas Expenses $125 Repair Expenses $800 Telephone Expenses $330 Advertising Expenses $900 Office Supplies Expenses $750 Depreciation expense, Office Equipment $160 Depreciation expense, Automobile $210 Total Expenses $4,075 Net Income $23,925 Balance Sheet for the period ending September 30 Assets Amount Current Assets Cash $22,545 Office Supplies $100 Prepaid Rent $800 Accounts receivable $10,000 Total Current Assets $33,445 Fixed Assets Office Equipment $5,000 Accumulated Depreciation, Office Equipmnet ($160) $4,840 Automobile $19,000 Accumulated Depreciation, Automobile ($210) $18,790 Total Fixed Assets $23,630 Total Assets $57,075 Liabilities Current Liabilities Accounts Payable $20,150 Owner's Equity James Sousa, Capital $17,000 James Sousa, Withdrawls ($4,000) Income Summary $23,925 Total Owner's Equity $36,925 Total Liabilities and Owner's Equity $57,075 Closing Journal Entries 30-Sep Commission Earned $28,000 Income Summary $28,000 30-Sep Income Summary $4,075 Rent Expense $200 Salaries Expenses $600 Gas Expenses $125 Repair Expenses $800 Telephone Expenses $330 Advertising Expenses $900 Office Supplies Expenses $750 Depreciation expense, Office Equipment $160 Depreciation expense, Automobile $210 Post Closing Trial Balance Acc. No. Particulars Amount 111 Cash $22,545 121 Office Supplies $100 114 Prepaid Rent $800 112 Accounts receivable $10,000 115 Office Equipment $5,000 122 Accumulated Depreciation, Office Equipmnet $160 123 Automobile $19,000 124 Accumulated Depreciation, Automobile $210 211 Accounts Payable $20,150 311 James Sousa, Capital $17,000 312 James Sousa, Withdrawls $4,000 313 Income Summary $23,925 $61,445 $61,445Related Questions
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