Utopia Realty acts as an agent in buying selling renting

Utopia Realty acts as an agent in buying, selling, renting, and managing real estate. The
unadjusted trial balance on October 31, 2012, is shown below.The following business
transactions were completed by Utopia Realty during November2012:Nov. 1. Paid rent on office
for month, $5,000.2. Purchased office supplies on account, $1,300.5. Paid annual insurance
premiums, $3,600.10. Received cash from clients on account, $25,000.15. Purchased land for a
future building site for $90,000, paying $10,000 in cash and giving a note payable for the
remainder.17. Paid creditors on account, $4,500.20. Returned a portion of the office supplies
purchased on November 2, receiving full credit for their cost, $200.23. Paid advertising
expense, $2,000.Enter the following transactions on Page 19 of the two-column journal.27.
Discovered an error in computing a commission; received cash from the salesperson for the
overpayment, $1,000.28. Paid automobile expense (including rental charges for an automobile),
$1,500.29. Paid miscellaneous expenses, $450.30. Recorded revenue earned and billed to
clients during the month, $30,000.30. Paid salaries and commissions for the month, $7,500.30.
Withdrew cash for personal use, $1,000.30. Rented land purchased on November 15 to local
merchants association for use as a parking lot in December and January, during a street
rebuilding program; received advance payment of $3,000. Instructions1. Record the November
1, 2010, 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 November in a two-column journal beginning on
Page18. 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 November 30, 2012.5. Assume that the November 30 transaction for
salaries and commissions should have been $5,700. (a) Why did the unadjusted trial balance in
(4) balance? (b) Journalize the correcting entry. (c) Is this error a transposition orslide?
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Utopia Realty acts as an agent in buying selling renting
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