problem 4 4 recurring and adjusting entries 459557

Following are Butler Realty Corporation’s accounts, identified by number. The company has been in the real estate business for ten years and prepares financial statements monthly. Following the list of accounts is a series of transactions entered into by Butler. For each transaction, enter the number(s) of the account(s) to be debited and credited.

Accounts:

1.Cash

2.Accounts receivable

3.Prepaid rent

4.Office supplies

5.Automobiles

6.Accumulated depreciation

7.Land

8.Accounts payable

9.Salaries and wages payable

10.Income tax payable

11.Notes payable

12.Capital stock $10 par

13.Paid-in capital in excess of par

14.Commissions revenue

15.Office supply expense

16.Rent expense

17.Salaries and wages expense

18.Depreciation expense

19.Interest expense

20.Income tax expense

Transactions: Debit Credit

Example:Issued additional shares of stock to owners at amount in excess of par 1 12,13

b.Purchased automobiles for cash

c.Purchased land; made cash down payment and signed a promissory note for balance

d.Paid cash to landlord for rent for next 12 months

e.Purchased office supplies on account

f. Collected cash for commissions from clients for properties sold during the month

g.Collected cash for commissions from clients for properties sold the prior month

h.During the month, sold properties for which cash for commissions will be collected

from clients the next month

i.Paid for office supplies purchased on account in an earlier month

j.Recorded an adjustment to recognize wages and salaries incurred but not yet paid

k.Recorded an adjustment for office supplies used during the month

l. Recorded an adjusting entry for the portion of prepaid rent that expired during the

month

m.Made required month end payment on note taken out (c); payment is part interest

and part principal

n.Recorded adjusting entry for monthly depreciation on the autos

o.Recorded adjusting entry for income taxes