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...

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Accounting

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?
Solve the problem

	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

	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

	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?

Answer & Explanation Solved by verified expert

4.3 Ratings (652 Votes)

1)	See below
2)	Journalize
Date	Account Title	Debit	Credit
Apr.1	Rent Expense	$4,500
	Cash		$4,500

Apr.2	Office Supplies	$2,200
	Accounts Payable		$2,200

Apr.5	Prepaid Insurance	$5,100
	Cash		$6,000

Apr.10	Cash	$53,000
	Accounts Receivables		$53,000

Apr.15	Land	$230,500
	Cash		$22,000
	Notes Payable		$208,500

Apr.17	Accounts Payable	$6,100
	Cash		$6,100

Apr. 20	Accounts Payable	$330
	Office Supplies		$330

Apr.23	Advertising Expense	$4,500
	Cash		$4,500

Apr.27	Cash	$3,000
	Salary and Commission Expense		$3,000

Apr. 28	Automobile Expense	$1,700
	Cash		$1,700

Apr. 29	Miscellaneous Expense	$1,800
	Cash		$1,800

Apr.30	Accounts Receivable	$54,000
	Fees Earned		$54,000

Apr.30	Salary and Commission Expense	$11,900
	Cash		$11,900

Apr.30	Dividends	$4,000
	Cash		$4,000

Apr.30	Cash	$10,200
	Unearned Rent		$10,200

1)	GENERAL LEDGER

Account	Cash		Account #	11
Date	Item	Post. Ref	Debit	Credit
	Balance	?	$26,700.00

Account	Accounts Receivable		Account #	12
Date	Item	Post. Ref	Debit	Credit
	Balance	?	$59,300.00

Account	Prepaid Insurance		Account #	13
Date	Item	Post. Ref	Debit	Credit
	Balance	?	$3,100.00

Account	Office Supplies		Account #	14
Date	Item	Post. Ref	Debit	Credit
	Balance	?	$2,100.00

Account	Land		Account #	16
Date	Item	Post. Ref	Debit	Credit


Account	Accounts Payable		Account #	21
Date	Item	Post. Ref	Debit	Credit
	Balance	?		$12,700.00

Account	Unearned Rent		Account #	22
Date	Item	Post. Ref	Debit	Credit


Account	Notes Payable		Account #	23
Date	Item	Post. Ref	Debit	Credit

Account	Common Stock		Account #	31
Date	Item	Post. Ref	Debit	Credit
	Balance	?		$10,000.00

Account	Retained Earnings		Account #	32
Date	Item	Post. Ref	Debit	Credit
	Balance	?		$36,100.00

Account	Dividends		Account #	33
Date	Item	Post. Ref	Debit	Credit
	Balance	?	$2,300.00

Account	Retained Earnings		Account #	41
Date	Item	Post. Ref	Debit	Credit
	Balance	?		$234,500.00

Account	Salary and Commission Expense		Account #	51
Date	Item	Post. Ref	Debit	Credit
	Balance	?	$145,000.00

Account	Rent Expense		Account #	52
Date	Item	Post. Ref	Debit	Credit
	Balance	?	$29,000.00

Account	Advertising Expense		Account #	53
Date	Item	Post. Ref	Debit	Credit
	Balance	?	$16,700.00

Account	Automobile Expense		Account #	54
Date	Item	Post. Ref	Debit	Credit
	Balance	?	$5,100.00

Account	Miscellaneous Expense		Account #	59
Date	Item	Post. Ref	Debit	Credit
	Balance	?	$4,000.00

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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.

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.

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