Reference no: EM13343288
First, examine the chart of accounts for Stevens Realty
On June 1 John Stevens opened a real estate office in Hamilton called Stevens Realty. The following transactions were completed for the month of June.
2009
June 1 John Stevens invested $9,000 cash in the real estate agency along with $4,000 worth of office equipment.
1 Rented office space and paid three months' rent in advance, $3,000, cheque 601.
2 Bought a company automobile on account.
4 Purchased office supplies. Wrote cheque 603, $300.
5 Purchased additional office supplies on account, $150.
6 Sold a house and collected a $6,000 commission.
8 Paid gas bill for car, $22. Cheque 604.
15 Paid the salary of the part-time office secretary, $350. Cheque 605.
17 Sold a building lot and earned a commission, $6,500. Payment is to be received on July 8.
20 John Stevens withdrew $1,000 from the business to pay personal expenses. Cheque 606.
21 Sold a house and collected a $3,500 commission.
22 Paid gas bill for car. $25. Cheque 607.
24 Paid $600 to repair automobile. Cheque 608.
30 Paid the salary of the part-time office secretary, $350. Cheque 609.
30 Paid the June telephone bill, $510. Cheque 610.
30 Received advertising bill for June, $1,200. The bill is to be paid on July 2.
Required Work for June
1. Journalize transactions and post to ledger accounts.
2. Prepare a trial balance in the first two columns of the worksheet and complete the worksheet using the following adjustment data:
a. One month's rent had expired
b. An inventory shows $50 worth of office supplies remaining
c. Amortization on office equipment, $100
d. Amortization on automobile, $200
3. Prepare a June income statement, statement of owner's equity, and balance sheet.
4. From the worksheet, journalize and post adjusting and closing entries (page 3 of journal).
5. Prepare a post-closing trial balance.
During July, Stevens Realty completed these transactions:
2009
July 2 Purchased additional office supplies on account, $700.
3 Paid advertising bill for June. Cheque 612.
4 Sold a house and collected a commission, $6,600.
6 Paid for gas for car, $29. Cheque 613.
8 Collected commission from sale of building lot on June 17.
12 Paid $300 to send employees to realtor's workshop. Cheque 614.
15 Paid the salary of the part-time office secretary, $350. Cheque 615.
17 Sold a house and earned a commission of $2,400. Commission to be received on August 10.
18 Sold a building lot and collected a commission of $7,000.
22 Sent a cheque for $40 to help sponsor a local road race to aid the poor.
(This is not to be considered an advertising expense, but it is a business expense.) Cheque 616.
24 Paid for repairs to automobile, $590. Cheque 617.
28 John Stevens withdrew $1,800 from the business to pay personal expenses.
Cheque 618.
30 Paid the salary of the part-time office secretary, $350. Cheque 619.
30 Paid the July telephone bill, $236. Cheque 620.
30 Advertising bill for July was received, $1,400. The bill is to be paid in August.
Required Work for July
1. Journalize transactions in a general journal (pages 4 and 5) and post to ledger accounts.
2. Prepare a trial balance in the first two columns of the worksheet and complete the worksheet using the following adjustment data:
a. One month's rent had expired.
b. An inventory shows $90 worth of office supplies remaining.
c. Amortization on office equipment, $100
d. Amortization on automobile, $200
3. Prepare a July income statement, statement of owner's equity, and balance sheet.
4. From the worksheet, journalize and post adjusting and closing entries (page 6 of journal).
5. Prepare a post-closing trial balance