Earned sales commissions receiving cash

AC 2760 Week 2 Assignment


Read the following scenario, and complete the form on the following worksheet:


On March 1, 2012, Mitch Quade established Mitch Realty, which completed the following transactions during the month:

(a) Mitch Quade transferred cash from a personal bank account to an account to be used for the business in exchange for capital stock, $18,000.
(b) Purchase supplies on account, $1,200.
(c) Earned sales commission, receiving cash, $14,00.
(d) Paid rent on office and equipment for the month, $2,800.
(e) Paid creditor on account, $750.
(f) Paid office salaries, $3,000.



Instructions:

1 Journalize entries for transactions (a) through (f). Omit the journal entry explanations. Please use the drop-down list (right of the cell) to enter the account description box on the worksheet.

2 Post the journal entries the T accounts, placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balance after all posting is complete. Accounts containing only a single entry do not need a balance.

3
Prepare and unadjusted trial balance as of March 31, 2012.

Name:
Section: AC2760

Enter the appropriate amount or item in the shaded cells.
An asterisk (*) will appear next to an incorrect entry in the outlined cells.

1. Journal - Mitch Realty
Description Debit Credit
(a) Cash 18,000
Capital Stock 18,000

(b) Supplies 1,200
Accounts Payable 1,200

(c) Cash 1,400 *
Sales Commissions 1,400 *

(d) Rent Expense 2,800 *
Cash 2,800 *

(e) Accounts Payable 750
Cash 750

(f) Office Salaries Expense 3,000 *
Cash 3,000 *


2. Ledger - Mitch Realty

Cash Capital Stock
(a) 18,000 (d) 3,000 (a) 18,000
(c) (e) 750
(f) 2,800
2 Sales Commission
Bal. (c) * 1,400


Supplies Office Salaries Expense
(b) 1,200 1 (f) 2,800 1


Accounts Payable Rent Expense
(e) 750 (b) 1,200 (d) 3,000 1
Bal. 450


3. MITCH REALTY
Unadjusted Trial Balance
March 31, 2012
Debit Credit
Cash
Supplies 1,200
Accounts Payable
Capital Stock 18,000
Sales Commissions
Rent Expense 2,800
Office Salaries Expense 3,000