On January 1, 2019, Sharon Matthews established Tri-City Realty,which completed the following transactions during the month:
Jan. | 1 | Sharon Matthews transferred cash from a personal bank accountto an account to be used for the business, $30,000. |
| 2 | Paid rent on office and equipment for the month, $2,450. |
| 3 | Purchased supplies on account, $2,200. |
| 4 | Paid creditor on account, $850. |
| 5 | Earned fees, receiving cash, $14,940. |
| 6 | Paid automobile expenses (including rental charge) for month,$1,580, and miscellaneous expenses, $470. |
| 7 | Paid office salaries, $2,000. |
| 8 | Determined that the cost of supplies used was $1,100. |
| 9 | Withdrew cash for personal use, $3,200. |
Required:
1. | Journalize entries for transactions Jan. 1 through 9. Refer tothe Chart of Accounts for exact wording of account titles. |
2. | Post the journal entries to the T accounts, selecting theappropriate date to the left of each amount to identify thetransactions. Determine the account balances after all posting iscomplete. Accounts containing only a single entry do not need abalance. |
3. | Prepare an unadjusted trial balance as of January 31,2019. |
4. | 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. |
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5. | Determine the increase or decrease in owner’s equity forJanuary. |