Carl Brown decided to establish an advertising agencyto be known as brown advertising inc. Browns Business transactions for the first month of operations ending june 30th, 2016 were as follows. Journalize browns business transactions.
June 1 Stockholders invested $40,000 cash in the business in exchange for common stock.
June 2 Paid office rent for one month, $1,600.
June 2 Purchased office equipment on account, $11,700.
June 4 Paid cash for office supplies, $700.
June 6 Paid the telephone bill, $425
June 12 Recieved $5,120 cash for advertising fees earned.
June 15 Paid $4,000 on accounts payable balance.
June 20 Recieved $3,200 cash for advertising fees earned.
June 25 Paid $2,200 wages to office secretary
June 30 Paid $5,000 in cash dividends.
Carl Brown decided to establish an advertising agencyto be known as brown advertising inc. Browns Business transactions for the first month of operations ending june 30th, 2016 were as follows. Journalize browns business transactions.
June 1 Stockholders invested $40,000 cash in the business in exchange for common stock.
June 2 Paid office rent for one month, $1,600.
June 2 Purchased office equipment on account, $11,700.
June 4 Paid cash for office supplies, $700.
June 6 Paid the telephone bill, $425
June 12 Recieved $5,120 cash for advertising fees earned.
June 15 Paid $4,000 on accounts payable balance.
June 20 Recieved $3,200 cash for advertising fees earned.
June 25 Paid $2,200 wages to office secretary
June 30 Paid $5,000 in cash dividends.
Related questions
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| Gabi Gram started The Gram Co., a new business that began operations on May 1. The Gram Co. completed the following transactions during its first month of operations. |
| May 1 | G. Gram invested $40,000 cash in the company in exchange for its common stock. |
| 1 | The company rented a furnished office and paid $2,200 cash for Mayâs rent. |
| 3 | The company purchased $1,890 of office equipment on credit. |
| 5 | The company paid $750 cash for this monthâs cleaning services. |
| 8 | The company provided consulting services for a client and immediately collected $5,400 cash. |
| 12 | The company provided $2,500 of consulting services for a client on credit. |
| 15 | The company paid $750 cash for an assistantâs salary for the first half of this month. |
| 20 | The company received $2,500 cash payment for the services provided on May 12. |
| 22 | The company provided $3,200 of consulting services on credit. |
| 25 | The company received $3,200 cash payment for the services provided on May 22. |
| 26 | The company paid $1,890 cash for the office equipment purchased on May 3. |
| 27 | The company purchased $80 of advertising in this monthâs (May) local paper on credit; cash payment is due June 1. |
| 28 | The company paid $750 cash for an assistantâs salary for the second half of this month. |
| 30 | The company paid $300 cash for this monthâs telephone bill. |
| 30 | The company paid $280 cash for this monthâs utilities. |
| 31 | The company paid $1,400 cash in dividends to the owner (sole shareholder). |
8.
value:
0.36 points
Required information
| Required: | |
| 2. | Enter the amount of each transaction on individual items of the accounting equation. Do not determine new account balances after each transaction. (Enter the transactions in the given order. Enter reductions to account balances with a minus sign.) |
Elite RealtyGeneral Ledger
| ASSETS | |
| 11 | Cash |
| 12 | Accounts Receivable |
| 13 | Prepaid Insurance |
| 14 | Office Supplies |
| 16 | Land |
| LIABILITIES | |
| 21 | Accounts Payable |
| 22 | Unearned Rent |
| 23 | Notes Payable |
| EQUITY | |
| 31 | Common Stock |
| 32 | Retained Earnings |
| 33 | Dividends |
| REVENUE | |
| 41 | Fees Earned |
| EXPENSES | |
| 51 | Salary and Commission Expense |
| 52 | Rent Expense |
| 53 | Advertising Expense |
| 54 | Automobile Expense |
| 59 | Miscellaneous Expense |
Elite Realty acts as an agent in buying, selling, renting, andmanaging real estate. The unadjusted trial balance on March 31,2018, follows:
Elite Realty
UNADJUSTED TRIAL BALANCE
March 31, 2018
| ACCOUNT TITLE | DEBIT | CREDIT | |
|---|---|---|---|
1 | Cash | 26,700.00 | |
2 | Accounts Receivable | 59,300.00 | |
3 | Prepaid Insurance | 3,100.00 | |
4 | Office Supplies | 2,100.00 | |
5 | Accounts Payable | 12,700.00 | |
6 | Common Stock | 10,000.00 | |
7 | Retained Earnings | 36,100.00 | |
8 | Dividends | 2,300.00 | |
9 | Fees Earned | 234,500.00 | |
10 | Salary and Commission Expense | 145,000.00 | |
11 | Rent Expense | 29,000.00 | |
12 | Advertising Expense | 16,700.00 | |
13 | Automobile Expense | 5,100.00 | |
14 | Miscellaneous Expense | 4,000.00 | |
15 | Totals | 293,300.00 | 293,300.00 |
The following business transactions were completed by EliteRealty during April 2018. Enter the transactions through the 23rdon Page 18 of the two-column journal:
| Apr. | 1 | Paid rent on office for month,$4,500. |
| 2 | Purchased office supplies onaccount, $2,200. | |
| 5 | Paid insurance premiums,$5,100. | |
| 10 | Received cash from clients onaccount, $53,000. | |
| 15 | Purchased land for a futurebuilding site for $230,500, paying $22,000 in cash and giving anote payable for the remainder. | |
| 17 | Paid creditors on account,$6,100 | |
| 20 | Returned a portion of theoffice supplies purchased on April 2, receiving full credit fortheir cost, $330. | |
| 23 | Paid advertising expense,$4,500. |
Enter the following transactions on Page 19 of the two-columnjournal:
| Apr. | 27 | Discovered an error incomputing a commission; received cash from the salesperson for theoverpayment, $3,000. |
| 28 | Paid automobile expense(including rental charges for an automobile), $1,700. | |
| 29 | Paid miscellaneous expenses,$1,800. | |
| 30 | Recorded revenue earned andbilled to clients during the month, $54,000. | |
| 30 | Paid salaries and commissionsfor the month, $11,900. | |
| 30 | Paid dividends, $4,000. | |
| 30 | Rented land purchased on April15 to local merchants association for use as a parking lot in Mayand June, during a street rebuilding program; received advancepayment of $10,200. |
| Required: | |
|---|---|
| 1. | Record the April 1, 2018,balance of each account in the appropriate balance column of afour-column account, type Balance in the item section, and select acheck mark in the Posting Reference column. |
| 2. | Journalize the transactionsfor April in a two-column journal beginning on Page 18. Refer tothe Chart of Accounts for exact wording of account titles. Insertthe appropriate posting references in both the journal and theledger as each item is posted. |
| 3. | Post to the ledger, extendingthe account balance to the appropriate balance column after eachposting. Post in chronological order. For transactions occurring onthe same day, post in the order presented in the instructions.Insert the appropriate posting references in both the journal andthe ledger as each item is posted. |
| 4. | Prepare an unadjusted trialbalance of the ledger as of April 30, 2018. |
| 5. | Assume that the April 30transaction for salaries and commissions should have been $19,100.(a) Why did the unadjusted trial balance in (4) balance? (b)Journalize the correcting entry on April 30. Use page 20. (Note:You will not be required to post this entry to the ledger at thistime.) (c) Is this error a transposition or slide? |
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