Reference no: EM13343288

First, examine the chart of accounts for Stevens Realty

On June 1 John Stevens opened a real estate office in Hamilton called Stevens Realty. The following transactions were completed for the month of June.

2009

June    1 John Stevens invested $9,000 cash in the real estate agency along with $4,000 worth of office equipment.

  1 Rented office space and paid three months' rent in advance, $3,000, cheque 601.

   2 Bought a company automobile on account.

   4 Purchased office supplies. Wrote cheque 603, $300.

   5 Purchased additional office supplies on account, $150.

   6 Sold a house and collected a $6,000 commission.

   8 Paid gas bill for car, $22. Cheque 604.

   15 Paid the salary of the part-time office secretary, $350. Cheque 605.

   17 Sold a building lot and earned a commission, $6,500. Payment is to be received on July 8.

   20 John Stevens withdrew $1,000 from the business to pay personal expenses. Cheque 606.

   21  Sold a house and collected a $3,500 commission.

   22 Paid gas bill for car. $25. Cheque 607.

   24 Paid $600 to repair automobile. Cheque 608.

   30 Paid the salary of the part-time office secretary, $350. Cheque 609.

   30 Paid the June telephone bill, $510. Cheque 610.

   30 Received advertising bill for June, $1,200. The bill is to be paid on July 2.

Required Work for June

1. Journalize transactions and post to ledger accounts.

2. Prepare a trial balance in the first two columns of the worksheet and complete the worksheet using the following adjustment data:

a. One month's rent had expired

b. An inventory shows $50 worth of office supplies remaining

c. Amortization on office equipment, $100

d. Amortization on automobile, $200

3. Prepare a June income statement, statement of owner's equity, and balance sheet.

4. From the worksheet, journalize and post adjusting and closing entries (page 3 of journal).

5. Prepare a post-closing trial balance.

During July, Stevens Realty completed these transactions:

2009

July     2 Purchased additional office supplies on account, $700.

   3 Paid advertising bill for June. Cheque 612.

   4 Sold a house and collected a commission, $6,600.

   6 Paid for gas for car, $29. Cheque 613.

   8 Collected commission from sale of building lot on June 17.

   12 Paid $300 to send employees to realtor's workshop. Cheque 614.

   15 Paid the salary of the part-time office secretary, $350. Cheque 615.

   17 Sold a house and earned a commission of $2,400. Commission to be received on August 10.

   18 Sold a building lot and collected a commission of $7,000.

   22 Sent a cheque for $40 to help sponsor a local road race to aid the poor.

(This is not to be considered an advertising expense, but it is a business expense.) Cheque 616.

   24 Paid for repairs to automobile, $590. Cheque 617.

   28 John Stevens withdrew $1,800 from the business to pay personal expenses.

Cheque 618.

   30 Paid the salary of the part-time office secretary, $350. Cheque 619.

   30 Paid the July telephone bill, $236. Cheque 620.

   30 Advertising bill for July was received, $1,400. The bill is to be paid in August.

Required Work for July

1. Journalize transactions in a general journal (pages 4 and 5) and post to ledger accounts.

2. Prepare a trial balance in the first two columns of the worksheet and complete the worksheet using the following adjustment data:

a. One month's rent had expired.

b. An inventory shows $90 worth of office supplies remaining.

c. Amortization on office equipment, $100

d. Amortization on automobile, $200

3. Prepare a July income statement, statement of owner's equity, and balance sheet.

4. From the worksheet, journalize and post adjusting and closing entries (page 6 of journal).

5. Prepare a post-closing trial balance