Elite Realty Unadjusted Trial Balance March 31, 2019 Debit Balances Credit Balances Account No. Cash ...... 11 26,300 Accounts Receivable. 61,500 3,000 1,800 12 Prepaid Insurance. Office Supplies... 13 14 Land ..... 16 Accounts Payable 21 14,000 Unearned Rent.... 22 Notes Payable..... Lester Wagner, Capital.. Lester Wagner, Drawing... Fees Earned... Salary and Commission Expense.. Rent Expense ... Advertising Expense. Automobile Expense Miscellaneous Expense . 23 31 46,000 32 2,000 41 240,000 148,200 30,000 51 52 53 17,800 5,500 54 59 3,900 300,000 300,000 Apr. Paid rent on office for month, $6,500. 1. 2. Purchased office supplies on account, $2,300. 5. Paid insurance premiums, $6,000. 10. Received cash from clients on account, $52,300. Purchased land for a future building site for $200,000, paying 15. $30,000 in cash and giving a note payable for the remainder. 17. Paid creditors on account, $6,450. Returned a portion of the office supplies purchased on April 2, 20. receiving full credit for their cost, $325. 23. Paid advertising expense, $4,300. Enter the following transactions on Page 19 of the two-column journal: Discovered an error in computing a commission; received cash 27. from the salesperson for the overpayment, $2,500. Paid automobile expense (including rental charges for an 28. automobile), $1,500. 29. Paid miscellaneous expenses, $1,400. Recorded revenue earned and billed to clients during the month, 30. $57,000. 30. Paid salaries and commissions for the month, $11,900. 30. Withdrew cash for personal use, $4,000. Rented land purchased on April 15 to local merchants association for use as a parking lot in May and June, during a street rebuilding program; received advance payment of 30. $10,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Journal entries and trial balance
Elite Realty acts as an agent in buying, selling, renting, and managing
real estate. The unadjusted trial balance on March 31, 2019, follows: (attached)

The attached business transactions were completed by Elite Realty
during April 2019:

Instructions
1. Record the April 1, 2019, balance of each account in the appropriate
balance column of a four-column account, write Balance in the item
section, and place a check mark () in the Posting Reference column.

2. Journalize the transactions for April in a two-column journal
beginning on Page 18. Journal entry explanations may be omitted.
3. Post to the ledger, extending the account balance to the appropriate
balance column after each posting.
4. Prepare an unadjusted trial balance of the ledger as of April 30, 2019.

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. (c) Is this error a
transposition or slide?

Elite Realty
Unadjusted Trial Balance
March 31, 2019
Debit
Balances
Credit
Balances
Account
No.
Cash ......
11
26,300
Accounts Receivable.
61,500
3,000
1,800
12
Prepaid Insurance.
Office Supplies...
13
14
Land .....
16
Accounts Payable
21
14,000
Unearned Rent....
22
Notes Payable.....
Lester Wagner, Capital..
Lester Wagner, Drawing...
Fees Earned...
Salary and Commission Expense..
Rent Expense ...
Advertising Expense.
Automobile Expense
Miscellaneous Expense .
23
31
46,000
32
2,000
41
240,000
148,200
30,000
51
52
53
17,800
5,500
54
59
3,900
300,000
300,000

Apr.
Paid rent on office for month, $6,500.
1.
2.
Purchased office supplies on account, $2,300.
5.
Paid insurance premiums, $6,000.
10.
Received cash from clients on account, $52,300.
Purchased land for a future building site for $200,000, paying
15.
$30,000 in cash and giving a note payable for the remainder.
17.
Paid creditors on account, $6,450.
Returned a portion of the office supplies purchased on April 2,
20.
receiving full credit for their cost, $325.
23. Paid advertising expense, $4,300.
Enter the following transactions on Page 19 of the two-column journal:
Discovered an error in computing a commission; received cash
27.
from the salesperson for the overpayment, $2,500.
Paid automobile expense (including rental charges for an
28.
automobile), $1,500.
29.
Paid miscellaneous expenses, $1,400.
Recorded revenue earned and billed to clients during the month,
30.
$57,000.
30.
Paid salaries and commissions for the month, $11,900.
30.
Withdrew cash for personal use, $4,000.
Rented land purchased on April 15 to local merchants
association for use as a parking lot in May and June, during a
street rebuilding program; received advance payment of
30.
$10,000.

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