On October 1, 2018, Jay Crowley established Affordable Realty,which completed the following transactions during the month: JayCrowley transferred cash from a personal bank account to an accountto be used for the business in exchange for Common Stock, $27,000.Paid rent on office and equipment for the month, $4,870. Purchasedsupplies on account, $1,440. Paid creditor on account, $530. Earnedsales commissions, receiving cash, $22,140. Paid automobileexpenses (including rental charge) for month, $1,350, andmiscellaneous expenses, $910. Paid office salaries, $2,830.Determined that the cost of supplies used was $800. Paid dividends,$1,310. Required: 1. Journalize entries for transactions (a)through (i) (in chronological order), using the following accounttitles: Cash, Supplies, Accounts Payable, Common Stock, Dividends,Sales Commissions, Rent Expense, Office Salaries Expense,Automobile Expense, Supplies Expense, Miscellaneous Expense. For acompound transaction, if an amount box does not require an entry,leave it blank. a. b. c. d. e. f. g. h. i. 2. Prepare T accounts,using the account titles in (1). Post the journal entries to theseT accounts, selecting the appropriate letter to the left of eachamount to identify the transactions. Determine the account balancesof the T accounts (when required), after all posting is complete.Accounts containing a single entry only (such as Common Stock) donot need a balance. Cash Bal. Supplies Bal. Accounts Payable Bal.Common Stock Dividends Sales Commissions Rent Expense OfficeSalaries Expense Automobile Expense Supplies Expense MiscellaneousExpense 3. Prepare an unadjusted trial balance as of October 31,2018. List all accounts in the order of Assets, Liabilities,Stockholders’ equity, Revenues, and Expenses. For those boxes inwhich no entry is required, leave the box blank. Affordable RealtyUnadjusted Trial Balance October 31, 2018 Debit Balances CreditBalances 4. As a result of the January transactions (a-i),determine the following: a. Amount of total revenue recorded in theledger. $ b. Amount of total expenses recorded in the ledger. $ c.Amount of net income for October. $ 5. Determine the increase ordecrease in retained earnings for October. $
