Determine amount of total revenue recorded in the ledger

Reference no: EM131527503

Question: On March 1, 2006, Tim Cochran established Star Realty, which completed the following transactions during the month:

a. Tim Cochran transferred cash from a personal bank account to an account to be used for the business in exchange for capital stock, $12,000.

b. Purchased supplies on account, $850.

c. Earned sales commissions, receiving cash, $12,600.

d. Paid rent on office and equipment for the month, $2,000. e. Paid creditor on account, $450.

f. Paid dividends, $1,500.

g. Paid automobile expenses (including rental charge) for month, $1,700, and miscellaneous expenses, $375. h. Paid office salaries, $3,000.

i. Determined that the cost of supplies used was $605.

Instructions: 1. Journalize entries for transactions (a) through (i), using the following accounts: Cash; Supplies; Accounts Payable; Capital Stock; Dividends; Sales Commissions Earned; Office Salaries Expense; Rent Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. Show the effects of each transaction on the financial statements using the margin notation illustrated in this chapter.

2. Post the journal entries to T accounts, placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete.

3. Prepare a trial balance as of March 31, 2006.

4. Determine the following:

a. Amount of total revenue recorded in the ledger.

b. Amount of total expenses recorded in the ledger.

c. Assuming that no adjustments are necessary, what is the amount of net income for March?

Reference no: EM131527503

Questions Cloud

What is the payback period of the project : What is the payback period of the project? What is the profitability index of the project? What is the IRR of the project? What is the NPV of the project?

How long does your search engine retain your searches : 1. How long does your search engine retain your searches? Why would search engines want to know what searches were performed by each of their customers?

Both systems are to be depreciated straight-line to zero : Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. HISC always needs a conveyor belt system;

Explain the impact technologies have on health care systems : Examine the impact technologies have on health care information systems.Describe the basic components of a strategic information system plan.

Determine amount of total revenue recorded in the ledger : On March 1, 2006, Tim Cochran established Star Realty, which completed the following transactions during the month.

Entity integrity vs referential integrity : What is your understanding of Entity Integrity Vs Referential Integrity. Illustrated with simple examples for ease of understanding of the concepts.

Analyze companys capital structure and its cost of capital : Analysis of the company's capital structure and its cost of capital. Highlight the key risks and what sort of actions management should take to manage it.

Find the leftmost even number : Please do it in Lisp, thanks a lot. Assume L is list of only integer numbers (Including zeros, or positive, or negative numbers, or could be an empty list).

Existing manual business functional-based transaction proces : DEFINE and DISCUSS the steps taken from an existing manual business functional-based transaction process to an improved, integrated, automated transactional.

User Account

All Pages