Paid automobile expenses including rental charge for month


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On October 1, 2010, Cody Doerr established Banyan Realty, which completed the following transactions during the month:

1 Cody Doerr transferred cash from a personal bank account to an account to be used for the business in exchange for capital stock, $54,400.

2 Purchased supplies on account, $3,100.

3 Earned sales commissions, receiving cash, $38,080.

4 Paid rent on office and equipment for the month, $11,800.

5 Paid creditor on account, $1,850.

6 Paid dividends, $9,300.

7 Paid automobile expenses (including rental charge) for month, $4,680, and miscellaneous expenses, $1,250.

8 Paid office salaries, $9,630.

9 Determined that the cost of supplies used was $2,230.

Required -

1. Journalize entries for transactions (1) through (9).

2. Prepare an unadjusted trial balance as of October 31, 2010.

3. Prepare T accounts.

4. Determine the following:

a. Amount of total revenues recorded in the ledger.

b. Amount of total expenses recorded in the ledger.

c. Amount of net income for October.

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Accounting Basics: Paid automobile expenses including rental charge for month
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