Chapter 4 Accounting Information Systems 197Debit Balances Credit Balances
Cash 4,920
Accounts Receivable 15,000
Prepaid Insurance 1,440
Office Supplies 960
Land 0
Office Equipment 10,480
Accumulated Depreciation 2,880
Accounts Payable 640
Salary and Commissions Payable 0
Unearned Fees 1,440
Notes Payable 0
Capital Stock 20,000
Retained Earnings 7,840
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
32,800 32,800The following business transactions were completed by Socket Realty during June 2007:June 1 Paid rent on office for June, $2,000.
2 Purchased office supplies on account, $1,100.
5 Paid annual insurance premiums, $1,920.
8 Received cash from clients on account, $13,040.
10 Purchased land for a future building site for $48,000, paying $4,800 in cash and
giving a non-interest-bearing note payable due in 2009 for the remainder.
16 Paid creditors on account, $640.
18 Returned a portion of the office supplies purchased on June 2, receiving full credit
for their cost, $140.
24 Paid advertising expense, $680.
25 Billed clients for fees earned, $18,800.
27 Paid salaries and commissions, $6,000
28 Paid automobile expense (including rental charges for an automobile), $600.
29 Paid miscellaneous expenses, $200.
30 Received cash from client for fees earned, $2,400.
30 Paid dividends, $800.Instructions
- Record the June 1 balance of each account in the appropriate column of a T account. Write
Balanceto identify the opening amounts. - Journalize the transactions for June 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 June 30, 2007.
- Total debit column,
$97,520
GENERAL LEDGER