Paid rent for the month journal entry

Journal Entries and Trial Balance

Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2019, follows:

Elite Realty
Unadjusted Trial Balance
March 31, 2019
Account
No. Debit
Balances Credit
Balances
11 Cash 12,970
12 Accounts Receivable 30,230
13 Prepaid Insurance 1,470
14 Office Supplies 880
16 Land —
21 Accounts Payable 8,550
22 Unearned Rent —
23 Notes Payable —
31 Lester Wagner, Capital 29,500
32 Lester Wagner, Drawing 1,030
41 Fees Earned 147,440
51 Salary and Commission Expense 110,900
52 Rent Expense 14,740
53 Advertising Expense 8,700
54 Automobile Expense 2,650
59 Miscellaneous Expense 1,920
185,490 185,490
The following business transactions were completed by Elite Realty during April 2019:

Apr. 1. Paid rent on office for month, $4,900.
2. Purchased office supplies on account, $1,270.
5. Paid insurance premiums, $3,530.
10. Received cash from clients on account, $24,490.
15. Purchased land for a future building site for $88,200, paying $9,700 in cash
and giving a note payable for the remainder.
17. Paid creditors on account, $4,410.
20. Returned a portion of the office supplies purchased on April 2, receiving
full credit for their cost, $200.
23. Paid advertising expense, $1,960.
27. Discovered an error in computing a commission; received cash from the salesperson
for the overpayment, $980.
28. Paid automobile expense (including rental charges for an automobile), $1,470.
29. Paid miscellaneous expenses, $440.
30. Recorded revenue earned and billed to clients during the month, $29,390.
30. Paid salaries and commissions for the month, $6,470.
30. Withdrew cash for personal use, $980.
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 $2,940.
Required:

Use the attached spreadsheet to complete parts 1 and 3. Click on the Spreadsheet icon to open and save the Excel file to your computer. Your input into the spreadsheet will not be included in your grade in CengageNOW on this problem.

1. Record the April 1, 2019, balance of each account in the appropriate balance column of a four-column account. The word Balance has been entered in the item section and a check mark (√) has been placed in the Posting Reference column.

2. Journalize and insert the posting reference for the transactions for April in a two-column journal beginning on Page 18. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank.

General Journal Page 18
Date Description Post. Ref. Debit Credit
2019
Apr. 1 Rent Expense
Cash
Apr. 2 Office Supplies
Accounts Payable
Apr. 5 Prepaid Insurance
Cash
Apr. 10 Cash
Accounts Receivable
Apr. 15 Land
Cash
Notes Payable
Apr. 17 Accounts Payable
Cash
Apr. 20 Accounts Payable
Office Supplies
Apr. 23 Advertising Expense
Cash

General Journal Page 19
Date Description Post. Ref. Debit Credit
2019
Apr. 27 Cash
Salary and Commission Expense
Apr. 28 Automobile Expense
Cash
Apr. 29 Miscellaneous Expense
Cash
Apr. 30-Rev. Accounts Receivable
Fees Earned
Salary Salary and Commission Expense
Cash
Withdraw Lester Wagner, Drawing
Cash
Rent Cash
Unearned Rent
Feedback

1. The ending balance for accounts on March 31 will be the beginning balance on April 1.

2. Identify which accounts are affected in each transaction. Keep in mind that every transaction involves at least two accounts. Determine whether the account increases or decreases and record each increase or decrease following the rules of debit and credit. Use the Posting Reference column to enter the corresponding account number from the general ledger account. Remember total debits should equal total credits in your entries.

3. Post to the ledger, extending the account balance to the appropriate balance column after each posting.

4. Using the balances from the spreadsheet, prepare an unadjusted trial balance of the ledger as of April 30, 2019. If an amount box does not require an entry, leave it blank.

Elite Realty
Unadjusted Trial Balance
April 30, 2019
Debit Balances Credit Balances
Cash
Accounts Receivable
Prepaid Insurance
Office Supplies
Land
Accounts Payable
Unearned Rent
Notes Payable
Lester Wagner, Capital
Lester Wagner, Drawing
Fees Earned
Salary and Commission Expense
Rent Expense
Advertising Expense
Automobile Expense
Miscellaneous Expense
5a. Assume that the April 30 transaction for salaries and commissions should have been $4,670. As a result, the unadjusted trial balance in (4) would still balance.

5b. Assume that the April 30 transaction for salaries and commissions should have been $4,670. Journalize the correcting entry. If an amount box does not require an entry, leave it blank.

General Journal PAGE 19
Date Description Post. Ref. Debit Credit
2019
Apr. 30 Cash
Salary and Commission Expense
5c. Assume that the April 30 transaction for salaries and commissions should have been $4,670. Is this error a transposition or slide?
Transposition