Sousa Realty
Review the accounting cycle twice
Make a chart of account for Sousa Realty
Assets
111cash Revenue
112 accountsreceivable 411 Commission Earned
114 prepaidrent Expenses
115 officeequipment 511 Rent Expense
121 officesupplies 512 Salaries expense
122 accumulated depreciation, officeequipment 513 Gas Expense
123automobile 514 Repairs Expense
124 accumulated depreciation,automobile 515 Telephone Expense
Liabilities 516 Advertising Expense
211 accountspayable 517 Office Supplies Expense
212 salariespayable 518 Depreciation Expense, Office equip
Ownerâsequity 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 officecalled Sousa Realty. The following transactions were completed forthe month of September.
September 1, James Sousa invested $12000 cash in the real estateagency along with $5000 of office supplies.
September 1, rented and paid 5 months, rent in advance to MurrayProperty Management $1000
September 1, bought an automobile on account from Hyundai North$19000
September 4 Purchased office supplies from paper company forcash $600
September 5 purchased additional office supplies from papercompany, on account $250
September 6, sold a house to Hue and collected a $11000commission.
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 acommission $10000: payment to be received on October 6.
September 20, James Sousa withdrew $4000 from the business topay personal expenses.
September 21 sold a house to Suzanne and collected $7000commission.
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 fromChicago 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 theworksheet and complete the worksheet using the fallowing adjustmentdata:
A. one monthâs 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 ownerâs equity, and balance sheet
4 from the worksheet, journalize and post adjusting andclosing entries.
5 prepare a post closing trial balance.
During October, Sousa Realty completed these transactions.
October 1 purchased additional supplies on account from paperco. $850
October 2 paid Chicago times advertising bill for September $900Chicago 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 loton September 17 $10000
October 12 paid $530 to long realtorâs assoc. to send employeesto realtorâs 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 acommission of $4500
Oct. 22 sent a check to heritage for $65 to help sponsor localroad race (this amount is not considered an advertising expense, itis a business expense and is posted to miscellaneous expense)
Oct. 24 paid Hyundai North $620 for repairs to automobile due toaccident.
Oct. 28 James Sousa withdrew $2200 from the business to paypersonal 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 toledger accounts.
2 prepare a trial balance in the first two columns of a blankfold-out worksheet
A one monthâs rent had expired. Paid 5 months rent in advance onSeptember 1,$1000
b. an inventory shows $130 of office supplies remaining.
3 prepare an October income statement, statement of ownerâsequity and balance sheet.
4 from the worksheet journalize and post adjusting and closingentries.
5 prepare a post closing trial balance.
