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Posted: September 28th, 2022
Question description
On January 1, 2014, Alicia Masingale established Leopard Realty, which completed the following trandactions during the month:a. Alicia Masingale transferred cash from a personal bank account to an account to be used for the business, $23,500.b. Paid rent on office and equipment for the month, $4,000.c. Purchased supplies on account, $1,800.d. Paid creditor on account, $675.e. Earned sales commissions, receiving cash, $16,750.f. Paid automobile expenses (including rental charge) for month, $1,000, and misc expenses, $800.g. Paid office salaries, $2,150.h. Determined that the cost of supplies used was $925. I. Withdrew cash for personal use, $1,600.Prepare T accounts, using the account titles: Cash; Supplies; Accounts Payable; Alicia Masingale, Capital; Alicia Masingale, Drawing; Sales Commisions; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Misc Expense. Post Journal entries to these accounts, placing the appropriate letter 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.Prepare an adjusted trial balance as of January 31, 2014.Determine: a. Amount of total revenue recorded in the ledger.b. Amount of total expenses recorded in the ledger.c. Amount of net income for January.Determine the increase or decrease in owner's equity for January.
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