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Amount of total revenue recorded in the ledger

01/05/2021 Client: muhammad11 Deadline: 2 Day

On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month:

a. Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $40,000.

b. Paid rent on office and equipment for the month, $6,000.

c. Purchased supplies on account, $3,200.

d. Paid creditor on account, $1,750.

e. Earned fees, receiving cash, $18,250.

f. Paid automobile expenses (including rental charge) for month, $1,880, and miscellaneous expenses, $420.

g. Paid office salaries, $5,000.

h. Determined that the cost of supplies used was $1,400.

i. Withdrew cash for personal use, $2,000.

Instructions

1. Journalize entries for transactions (a) through (i), using the following account titles:

Cash; Supplies; Accounts Payable; Sharon Matthews, Capital; Sharon Matthews, Drawing; Fees Earned; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. Explanations may be omitted.

2. Prepare T accounts, using the account titles in (1). Post the journal entries to these

accounts, placing the appropriate letter to the left of each amount to identify the

transactions. Determine the account balances after all posting is complete. Accounts

containing only a single entry do not need a balance.

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.

5. Determine the increase or decrease in owner's equity for January.

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