On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed
ID: 2331380 • Letter: O
Question
On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month:
Required:
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.Explanation / Answer
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
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