Demonstration Problem

Bill Wagner is a real estate broker who operates his own business, Wagner Realty

Instructions:

1. Analyze the transactions for January 20X5, and record each in the general journal.
2. Determine the balance of each account. Prepare a trial balance.

Transactions:

1. Bill Wagner invested $25000 in Cash to start the business.
2. Wagner Realty purchases office furniture for $4500 on account.
3. Paid $ 1500 for one month’s rent.
4. Sold a house for the Monitor family and received fees of $ 6345 in cash.
5. Purchased a computer for $ 1999, paying $ 500 in cash and putting the balance on account for 60 days.
6. Paid $1450 for employee salaries.
7. Purchased office equipment for $ 1670 with credit terms of 60 days.
8. Sold a house for the Martins and will receive payment of $ 4893 in 30 days.
9. Issued a cheque for $ 670 for partial payment on the amount owed for office equipment.
10. Issued cheque for $ 156 to pay the utility bill.
11. Bill Wagner withdrew $ 3500 in cash for personal use.

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After attempting to determine your own answers, click here to view the solution.