4. The following transactions occurred during the month of October: 1) Paid $1,500 cash for store equipment. 2) Paid $1,000 in partial payment for supplies purchased 30 days previously. 3) Paid October's utility bill of $600. 4) Paid $1.200 to owner of business for his personal use. 5) Paid $1,400 salary of office employee for October. What is the total amount of expenses during October? a. $3,000 b. $4,500 c. $2,000 d. $3,500 e. $5,700
Related questions
On October 1, 20Y6, Jay Crowley established Affordable Realty, which completed the following transactions during the month:
|
Date |
Transaction |
|
Oct. 1 |
Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $40,000. |
|
2 |
Paid rent on office and equipment for the month, $4,800. |
|
3 |
Purchased supplies on account, $2,150. |
|
4 |
Paid creditor on account, $1,100. |
|
5 |
Earned sales commissions, receiving cash, $18,750. |
|
6 |
Paid automobile expenses (including rental charge) for the month, $1,580, and miscellaneous expenses, $800. |
|
7 |
Paid office salaries, $3,500. |
|
8 |
Determined that the cost of supplies used was $1,300. |
|
9 |
Paid dividends, $1,500. |
Required:
1. Journalize entries for transactions Oct. 1 through 9. Refer to the Chart of Accounts for the exact wording of account titles.
2. Post the journal entries to the T accounts, selecting the appropriate date to the left of each amount to identify the transactions.
3. Determine the account balances after all the posting is complete. Accounts containing only a single entry do not need a balance.
3. Prepare an unadjusted trial balance as of October 31, 20Y6.
4. Determine the following:
4a. Amount of total revenue recorded in the ledger.
4b. Amount of total expenses recorded in the ledger.
4c. Amount of net income for October.
5. Determine the increase or decrease in retained earnings for October.
