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Elite realty acts as an agent in buying

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

Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2014, is shown below.

Elite Realty acts as an agent in buying, selling, renting,

The following business transactions were completed by Elite Realty during April 2014:
Apr. 1. Paid rent on office for month, $6,500.
2. Purchased office supplies on account, $2,300.
5. Paid insurance premiums, $6,000.
10. Received cash from clients on account, $52,300.
15. Purchased land for a future building site for $200,000, paying $30,000 in cash and giving a note payable for the remainder.
17. Paid creditors on account, $6,450.
20. Returned a portion of the office supplies purchased on April 2, receiving full credit for their cost, $325.
23. Paid advertising expense, $4,300.
Enter the following transactions on Page 19 of the two-column journal.
27. Discovered an error in computing a commission; received cash from the salesperson for the overpayment, $2,500.
28. Paid automobile expense (including rental charges for an automobile), $1,500.
29. Paid miscellaneous expenses, $1,400.
30. Recorded revenue earned and billed to clients during the month, $57,000.
30. Paid salaries and commissions for the month, $11,900.
30. Paid dividends, $4,000.
30. Rented land purchased on April 15 to local merchants association for use as a parking lot in May and June, during a street rebuilding program; received advance payment of $10,000.

Instructions
1. Record the April 1, 2014, balance of each account in the appropriate balance column of a four-column account, write Balance in the item section, and place a check mark (✓) in the Posting Reference column.
2. Journalize the transactions for April in a two-column journal beginning on Page 18.
Journal entry explanations may be omitted.
3. Post to the ledger, extending the account balance to the appropriate balance column after each posting.
4. Prepare an unadjusted trial balance of the ledger as of April 30, 2014.
5. Assume that the April 30 transaction for salaries and commissions should have been $19,100. (a) Why did the unadjusted trial balance in (4) balance? (b) Journalize the corre

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