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Elite Realty

UNADJUSTED TRIAL BALANCE

March 31, 20Y3

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	26,900.00
2	Accounts Receivable	63,000.00
3	Prepaid Insurance	2,500.00
4	Office Supplies	2,400.00
5	Accounts Payable		12,000.00
6	Common Stock		10,000.00
7	Retained Earnings		37,800.00
8	Dividends	1,800.00
9	Fees Earned		238,300.00
10	Salary and Commission Expense	148,300.00
11	Rent Expense	27,000.00
12	Advertising Expense	16,300.00
13	Automobile Expense	6,000.00
14	Miscellaneous Expense	3,900.00
15	Totals	298,100	298,100

The following business transactions were completed by Elite Realty during April 20Y3. Enter the transactions through the 23rd on Page 18 of the two-column journal:

Apr.	1	Paid rent on office for month, $5,500.
	2	Purchased office supplies on account, $2,000.
	5	Paid insurance premiums, $6,500.
	10	Received cash from clients on account, $52,100.
	15	Purchased land for a future building site for $205,000, paying $28,000 in cash and giving a note payable for the remainder.
	17	Paid creditors on account, $6,400
	20	Returned a portion of the office supplies purchased on April 2, receiving full credit for their cost, $350.
	23	Paid advertising expense, $4,350.

Enter the following transactions on Page 19 of the two-column journal:

Apr.	27	Discovered an error in computing a commission; received cash from the salesperson for the overpayment, $2,900.
	28	Paid automobile expense (including rental charges for an automobile), $1,700.
	29	Paid miscellaneous expenses, $1,700.
	30	Recorded revenue earned and billed to clients during the month, $58,000.
	30	Paid salaries and commissions for the month, $11,200.
	30	Paid dividends, $4,000.
	30	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 $9,600.

Required:
1.	Record the April 1, 20Y3, balance of each account in the appropriate balance column of a four-column account, type Balance in the item section, and select a check mark in the Posting Reference column.
2.	Journalize the transactions for April in a two-column journal beginning on Page 18.
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, 20Y3.
5.	Assume that the April 30 transaction for salaries and commissions should have been $12,100. (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 this time.) (c) Is this error a transposition or slide?

Chart of Accounts CHART OF ACCOUNTS Elite Realty General Ledger ASSETS REVENUE 11 Cash 41 Fees Earned 12 Accounts Receivable 13 Prepaid Insurance EXPENSES 14 Office Supplies 51 Salary and Commission Expense 16 Land 52 Rent Expense 53 Advertising Expense LIABILITIES 54 Automobile Expense 21 Accounts Payable 59 Miscellaneous Expense 22 Unearned Rent 23 Notes Payable EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends General Journal JOURNAL ACCOUNTING EQUATION 2 the transactions for April in a two-column journal beginning on Page 18. General Ledger Account: Cash Account No. 11 General Ledger LEDGER Account: Cash Account No. 11 Account: Accounts Receivable Account No. 12 General Ledger General Ledger General Ledger General Ledger Instructions General Ledger General Ledger Instructions General Ledger General Ledger Instructions General Ledger General Ledger Instructions General Ledger General Ledger Instructions General Ledger General Ledger Instructions General Ledger General Ledger Instructions General Ledger General Ledger Instructions General Ledger General Ledger Instructions General Ledger General Ledger Instructions General Ledger General Ledger Instructions General Ledger General Ledger Unadjusted Trial Balance UNADJUSTED TRIAL BALANCE April 30, 20Y3 ACCOUNT TITLE DEBIT CREDIT 1 Cash 2 Accounts Receivable 3 Prepaid Insurance 4 Office Supplies 5 Land 6 Accounts Payable 7 Unearned Rent 8 Notes Payable 9 Common Stock 10 Retained Earnings 11 Dividends 12 Fees Earned 13 Salary and Commission Expense 14 Rent Expense 15 Advertising Expense 16 Automobile Expense 17 Miscellaneous Expense 18 Totals (b) Journalize the correcting entry on April 30. Use page (c) Is this error a transposition or slide? 5. Assume that the April 30 transaction for salaries and commissions should have been $12,100. (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 this time.)

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