60.1K

Verified Solution

Link Copied!

Journal Entries and Trial Balance On January 1, 20Y5, Fahad Ali established Mountain Top Realty, which completed the following transactions during the month: a. Fahad Ali transferred cash from a personal bank account to an account to be used for the business, $19,000. b. Paid rent on office and equipment for the month, $3,510. c. Purchased supplies on account, $1,040. d. Paid creditor on account, $380. e. Earned fees, receiving cash, $15,960. f. Paid automobile expenses (including rental charge) for month, $970, and miscellaneous expenses, $650. g. Paid office salaries, $2,040. h. Determined that the cost of supplies used was $570. i. Withdrew cash for personal use, $940. Required: 1. Journalize entries for transactions (a) through (i) (in chronological order), using the following account titles: Cash; Supplies; Accounts Payable; Fahad Ali, Capital; Fahad Ali, Drawing; Fees Earned; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. If an amount box does not reauire an entrv. leave it blank. the journal entries to of each amount to 'hen required), after all its or credits. 3. Prepare an unadjusted trial balance as of January 31,20Y5. If an amount box does not require an entry, leave it blank. Feedback - Check My Work 3. Prepare the trial balance using the ending balances of the T-accounts. Again, double-check to see if each account has a normal balance for that account classification placed in the proper Debit or Credit column. The trial balance column totals should be equal. 4. As a result of the January transactions (a-i), determine the following: a. Amount of total revenue recorded in the ledger. $ b. Amount of total expenses recorded in the ledger. $ c. Amount of net income for January. $ 5. Determine the total increase or decrease in owner's equity for January. $

Answer & Explanation Solved by verified expert

See Answer