Elite Realty acts as an agent in buying, selling, renting, and managing real est
ID: 2493828 • Letter: E
Question
Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2016, follows:
Elite Realty
UNADJUSTED TRIAL BALANCE
March 31, 2016
1
Cash
26,900.00
2
Accounts Receivable
59,600.00
3
Prepaid Insurance
2,800.00
4
Office Supplies
1,500.00
5
Land
6
Accounts Payable
12,000.00
7
Unearned Rent
8
Notes Payable
9
Common Stock
10,000.00
10
Retained Earnings
37,900.00
11
Dividends
1,900.00
12
Fees Earned
240,400.00
13
Salary and Commission Expense
147,600.00
14
Rent Expense
34,000.00
15
Advertising Expense
18,000.00
16
Automobile Expense
4,200.00
17
Miscellaneous Expense
3,800.00
18
Totals
300,300.00
300,300.00
The following business transactions were completed by Elite Realty during April 2016:
Enter the following transactions on Page 19 of the two-column journal:
ACCOUNT TITLE DEBIT CREDIT1
Cash
26,900.00
2
Accounts Receivable
59,600.00
3
Prepaid Insurance
2,800.00
4
Office Supplies
1,500.00
5
Land
6
Accounts Payable
12,000.00
7
Unearned Rent
8
Notes Payable
9
Common Stock
10,000.00
10
Retained Earnings
37,900.00
11
Dividends
1,900.00
12
Fees Earned
240,400.00
13
Salary and Commission Expense
147,600.00
14
Rent Expense
34,000.00
15
Advertising Expense
18,000.00
16
Automobile Expense
4,200.00
17
Miscellaneous Expense
3,800.00
18
Totals
300,300.00
300,300.00
Explanation / Answer
Date Accounts Debit Credit 1 Rent Expense 6,000 cash 6,000 - 2 Office supplies 2,200 - Accounts Payable 2,200 - 5 Prepaid Insurance 5,700 - cash 5,700 - 10 cash 52,000 - Accounts Receivable 52,000 - 15 Land 204,000 - cash 21,000 notes payable 183,000 - 17 Accounts Payable 6,050 - cash 6,050 - 20 Accounts payable 330 - Office supplies 330 - 23 advertising expense 4,400 - cash 4,400 - 27 cash 2,700 - Salary and Commission Expense 2,700 - 28 automobile expense 1,300 - cash 1,300 - 29 miscellaneous expenses 1,600 - cash 1,600 - 30 accounts receivable 58,000 - Fees Earned 58,000 - 30 Salary and Commission Expense 11,200 - cash 11,200 - 30 Dividends 4,000 - cash 4,000 - 30 cash 9,400 - Unearned Rent 9,400 Adjustments Adjusted TB ACCOUNT TITLE DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT 1 Cash 26,900.00 64100 61250 29,750.00 0 2 Accounts Receivable 59,600.00 58000 52000 65,600.00 0 3 Prepaid Insurance 2,800.00 5700 8,500.00 0 4 Office Supplies 1,500.00 2200 330 3,370.00 0 5 Land 204000 204,000.00 0 6 Accounts Payable 12,000.00 6,380.00 2,200.00 0.00 7,820.00 7 Unearned Rent 9400 0.00 9400 8 Notes Payable 183000 0.00 183000 9 Common Stock 10,000.00 0.00 10000 10 Retained Earnings 37,900.00 0.00 37900 11 Dividends 1,900.00 4000 5,900.00 0 12 Fees Earned 240,400.00 58,000.00 0.00 298400 13 Salary and Commission Expense 147,600.00 11200 2700 156,100.00 0 14 Rent Expense 34,000.00 6000 40,000.00 0 15 Advertising Expense 18,000.00 4400 22,400.00 0 16 Automobile Expense 4,200.00 1300 5,500.00 0 17 Miscellaneous Expense 3,800.00 1600 5,400.00 0 18 Totals 300,300.00 300,300.00 546,520.00 546,520.00
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