journal posting and trial balance

Journal Entries and Trial Balance

On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month:

Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $18,000.
Paid rent on office and equipment for the month, $3,330.
Purchased supplies on account, $980.
Paid creditor on account, $360.
Earned fees, receiving cash, $15,120.
Paid automobile expenses (including rental charge) for month, $920, and miscellaneous expenses, $620.
Paid office salaries, $1,940.
Determined that the cost of supplies used was $540.
Withdrew cash for personal use, $890.
Required:

1. Journalize entries for transactions (a) through (i) (in chronological order), using the following account titles: Cash; Supplies; Accounts Payable; Sharon Matthews, Capital; Sharon Matthews, Drawing; Fees Earned; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. For a compound transaction, if an amount box does not require an entry, leave it blank.

a.
Cash
18,000
Sharon Matthews, Capital
18,000
b.
Rent Expense
3,330
Cash
3,330
c.
Supplies
980
Accounts Payable
980
d.
Accounts Payable
360
Cash
360
e.
Cash
15,120
Fees Earned
15,120
f.
Automobile Expense
920
Miscellaneous Expense
620
Cash
1,540
g.
Office Salaries Expense
1,940
Cash
1,940
h.
Supplies Expense
540
Supplies
540
i.
Sharon Matthews, Drawing
890
Cash
890
Feedback
1. Identify which accounts are affected in each transaction. Keep in mind that every transaction involves at least two accounts. Determine whether the account increases or decreases and record each increase or decrease following the rules of debit and credit. Remember total debits should equal total credits in your entries.

2. Prepare T accounts, using the account titles in (1). Post the journal entries to these T accounts, selecting the appropriate letter to the left of each amount to identify the transactions. Determine the account balances (when required), after all posting is complete, for all accounts having two or more debits or credits.

Cash
a.
18,000
b.
3,330
e.
15,120
d.
360

f.
1,540

g.
1,940

i.
890
Bal.
25,060

Supplies
c.
980
h.
540
Bal.
440

Accounts Payable
d.
360
c.
980
Bal.
620

Sharon Matthews, Capital

a.
18,000

Sharon Matthews, Drawing
i.
890

Fees Earned

e.
15,120

Rent Expense
b.
3,330

Office Salaries Expense
g.
1,940

Automobile Expense
f.
920

Supplies Expense
h.
540

Miscellaneous Expense
f.
620

3. Prepare an unadjusted trial balance as of January 31, 2019. For those boxes in which no entry is required, leave the box blank.

Tri-City Realty
Unadjusted Trial Balance
January 31, 2019
Debit
Balances Credit
Balances
Cash
Supplies
Accounts Payable
620
Sharon Matthews, Capital
18,000
Sharon Matthews, Drawing
890
Fees Earned
15,120
Rent Expense
3,330
Office Salaries Expense
1,940
Automobile Expense
920
Supplies Expense
540
Miscellaneous Expense
620
4. As a result of the January transactions (a-i), determine the following:

a. Amount of total revenue recorded in the ledger.
$
15,120
b. Amount of total expenses recorded in the ledger.
$
c. Amount of net income for January.
$
5. Determine the total increase or decrease in owner’s equity for January.
$

Increase