40 Total Points
“Helpful hints” to begin the assignment:
– Read the assigned chapters and watch the content review for this week.
– Remember a journal entry must balance (the debit must equal the credit). Make sure you complete both the debit and credit sides.
– Answer the questions you know first; then move to the items that are more challenging.
– Do not wait until the last minute to begin the assignment as you may find that you need to obtain Instructor or Academic coach assistance.
– Important for support: If you need assistance, contact your Instructor or Academic coach immediately.
– Important for you time management: Your assignment is due Sunday at 11:59pm (Eastern Time).
Read the following scenario, and complete the journal entries on the form below:
On March 1, 2012, Mitch
Quade established Mitch
Realty, which completed the
following transactions during
the month:
(a) Mitch Quade transferred cash from a personal bank account to an account to be used for the business in exchange for capital stock, $18,000.
(b)
(c)
Earned sales commission, receiving cash, $14,000.
(d)
Paid rent on office and equipment for the month,
$2,800.
(e)
(f)
Instructions for Part One
Journalize entries for transactions (a) through (f) . Please use the drop-down list to enter the account name for both the debit and credit.
24 Points (1 point each)
1. Journal – Mitch Realty
Debit Credit
(a) $18,000
$18,000
Select the Best Response
Accounts Payable
(b) $1,200 Capital Stock
$1,200 Cash
Office Salaries Expense
(c) $14,000 Rent Expense
$14,000 Sales Commissions
Supplies
(d) $2,800 Supplies Expense
$2,800
(e) $750
$750
(f) $3,000
$3,000
Instructions for Part Two
Post the journal entries to the T accounts, placing the appropriate amount to the right of each letter from part one. Determine the
account balances for cash and accounts payable. For accounts containing only a single entry, you use the journal entry amount for the balance.
9 Points (.75 points each)
2. Ledger – Mitch Realty
(a) $18,000 (d) $2,800 (a) $18,000
(c) $14,000 (e) $750
(f) $3,000
$1,200 *
(c)
$14,000
(b) $1,200 (f) $3,000
(e) $750 (b) $1,200 (d) $2,800
$450
Instructions for Part Three
Prepare an unadjusted trial balance as of March 31, 2012.
7 Points (1 point each)
3. MITCH REALTY
Unadjusted Trial Balance
March 31, 2012
Debit Credit
Accounts Payable
Office Salaries Expense
HM1030 – Week 2 Assignment
Paid creditor on account, $750.
Paid office salaries, $3,000.
Cash
Purchase supplies on account, $1,200.
Description
Cash
Capital Stock
Cash
Sales Commissions
Supplies
Accounts Payable
Rent Expense
Bal.
Accounts Payable
Rent Expense
Cash
Cash
Cash
Office Salaries Expense
Sales Commission
Capital Stock
Supplies
Bal.