Answer :
Answer:
Explanation:
Sharon Matthews/ Tri-City Realty
A. Journal entries
1. Owners start up capital
Debit Capital account with $40,000
Credit Cash account with $40,000
2. Rent of Office and Equipment
Debit Rent of Office and Equipment Account with $6,000
Credit Cash Account with $6,000
3. Supplies Purchased.
Debit Supplies Account with $3,200
Credit Accounts payable with $3,200
4. Part payment of Creditors balance
Debit Accounts payable with $1,750
Credit Cash with $1,750
5. Fees earned
Debit cash with $18,250
Credit Fees earned with $18,250
6. Automobile & miscellaneous expenses
Debit automobile expense with $1,880
Debit miscellaneous expense with $420
Credit cash with $2,300
7.Office salary
Debit Office Salary Account with $5,000
Credit Cash with $5,000
8. Supplies expensed
Debit Supplies expense account with $1,400
Credit supplies account with $1,400
9. Capital drawings
Debit Capital drawings with $2,000
Credit Cash with $2,000
B. Account Balances
Fees Received $18,250
Supplies expense $1,400
Office salary $5,000
Automobile expense $1,800
Miscellaneous expense $420
Rentals of Office & equipment $6,000
Payables (opening) = $3,200
Less Cash payment = -$1,750
Payables (closing) = $1,450
Capital Account = $40,000
Less drawings -$2,000
Capital (closing) = $38,000
Cash Account = $40,000 - $6,000 - $1,750 + $18,250 - $1,880 - $420 - $5,000 - $2,000 = $41,200
Supplies (opening) = $3,200
Supplies expensed = $1,400
Supplies (closing) = $1,800
C. Trial balance of Tri-City reality
Fees Received -$18,250
Supplies expense $1,400
Office salary $5,000
Automobile expense $1,880
Miscellaneous expense $420
Rentals of Office & equipment $6,000
Accounts payable -$1,450
Supplies $1,800
Cash $41,200
Capital -$38,000
Net income -$3,550
Total $0
D. Net income statement
Revenue $18,250
Less Expenses -$14,700
Net income $3,550
E. Change in owners equity
Capital Account = $40,000
Less drawings -$2,000
Capital (closing) = $38,000