Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 10

Journal entries and trial balance
Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2016, follows:

The following business transactions were completed by Elite Realty during April 2016:

Enter the following transactions on Page 19 of the two-column journal:

Instructions
1. Record the April 1, 2016, balance of each account in the appropriate balance column of a four-column account, write Balance in the item section, and place a check mark () in the Posting Reference column.
2. Journalize the transactions for April in a two-column journal beginning on Page 18. Journal entry explanations may be omitted.
3. Post to the ledger, extending the account balance to the appropriate balance column after each posting.
4. Prepare an unadjusted trial balance of the ledger as of April 30, 2016.
5. Assume that the April 30 transaction for salaries and commissions should have been $19,100. (a) Why did the unadjusted trial balance in (4) balance (b) Journalize the correcting entry. (c) Is this error a transposition or slide