Chapter 4 Accounting Information Systems 201
Debit Balances Credit BalancesCash 16,300
Accounts Receivable 57,500
Prepaid Insurance 2,200
Office Supplies 2,100
Land 0
Office Equipment 17,000
Accumulated Depreciation 4,800
Accounts Payable 1,800
Salary and Commissions Payable 0
Unearned Fees 3,000
Notes Payable 0
Capital Stock 20,000
Retained Earnings 65,500
Dividends 0
Fees Earned 0
Salary and Commission Expense 0
Rent Expense 0
Office Supplies Expense 0
Advertising Expense 0
Automobile Expense 0
Insurance Expense 0
Depreciation Expense 0
Miscellaneous Expense 0
95,100 95,100The following business transactions were completed by Gypsum Realty during April 2007:
Apr. 1 Paid rent on office for April, $8,000.
2 Purchased office supplies on account, $2,750.
5 Paid annual insurance premiums, $3,300.
8 Received cash from clients on account, $55,000.
15 Purchased land for a future building site for $150,000, paying $15,000 in cash and
giving a non-interest-bearing note payable due in 2011 for the remainder.
17 Paid creditors of April 2 purchase on account, $1,800.
20 Returned a portion of the office supplies purchased on April 2, receiving full credit
for their cost, $550.
24 Paid advertising expense, $2,200.
25 Billed clients for fees earned, $76,800.
27 Paid salaries and commissions, $23,000.
28 Paid automobile expense (including rental charges for an automobile), $1,430.
29 Paid miscellaneous expense, $430.
30 Received cash from client for fees earned, $10,000.
30 Paid dividends, $4,000.
Instructions
- Record the April 1 balance of each account in the appropriate column of a T account. Write
Balanceto identify the opening amounts. - Journalize the transactions for April in a two-column journal.
- Post the journal entries to the T accounts, placing the date to the left of each amount
to identify the transaction. Determine the balances for all accounts with more than one
posting. - Prepare an unadjusted trial balance of the ledger as of April 30.