On August 1, 2016, Bill Hudson established Heritage Realty

Subject: Business    / Accounting
Question

On August 1, 2016, Bill Hudson established Heritage Realty, which completed the following transactions during the month:
Aug.    1    Bill Hudson transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $30,000.
2    Paid rent on office and equipment for the month, $3,250.
3    Purchased supplies on account, $2,150.
4    Paid creditor on account, $875.
5    Earned sales commissions, receiving cash, $14,440.
6    Paid automobile expenses for month, $1,580, and miscellaneous expenses, $650.
7    Paid office salaries, $3,000.
8    Determined that the cost of supplies used was $1,300.
9    Paid dividends, $2,500.

1.    Journalize entries for transactions Aug. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles.
2.    Post the journal entries to the T accounts, selecting the appropriate date to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance.
3.    Prepare an unadjusted trial balance as of August 31, 2016.
4.    Determine the following:
a. Amount of total revenue recorded in the ledger.
b. Amount of total expenses recorded in the ledger.
c. Amount of net income for August.
5.    Determine the increase or decrease in retained earnings for August.