Reference no: EM132662137
Sabourin Realty has been in business for several years. Here, in random order, are the balances in the accounts on September 30: Cash ?; Accounts Payable $5250; Land $183 200; Bank Loan $9570; Accounts Receivable $6325; Building $182 100; Mortgage $105 500; Equipment $9375; J. Sabourin, Capital $267 500; Supplies $1150.
Problem (a) Calculate the correct balance in the Cash account.
Problem (b) Open a T-account ledger in correct order using the balances shown above.
Problem (c) Record the following October transactions in the ledger.
Problem (d) Prepare a trial balance and a balance sheet on October 14, 20--. Oct.
1 Received $1000 due from a client since last month.
2 Purchased $25 worth of office supplies for cash.
4 Obtained an additional bank loan for $28 000 to purchase a company car.
5 Purchased a car from Mullen Motors for $28 250 cash. (Hint: open a new account.)
7 Made the regular $500 monthly mortgage payment.
9 A defective office chair purchased on credit last month was returned to the supplier. The chair originally cost $175. (Hint: use the Equipment account.)
10 Sold an unused portion of land beside the office for $80 000 cash. This amount was equal to the original cost of the land.
11 Purchased a new telephone system for the office for $3500. A down payment of $1000 was required, with the balance due on receipt of the invoice.
12 J. Sabourin purchased $75 worth of postage stamps for the business from his own funds.
14 Paid $250 to a creditor.