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Elite RealtyGeneral Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Prepaid Insurance
14	Office Supplies
16	Land

	LIABILITIES
21	Accounts Payable
22	Unearned Rent
23	Notes Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends

	REVENUE
41	Fees Earned

	EXPENSES
51	Salary and Commission Expense
52	Rent Expense
53	Advertising Expense
54	Automobile Expense
59	Miscellaneous Expense

Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2018, follows:

Elite Realty

UNADJUSTED TRIAL BALANCE

March 31, 2018

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	26,700.00
2	Accounts Receivable	59,300.00
3	Prepaid Insurance	3,100.00
4	Office Supplies	2,100.00
5	Accounts Payable		12,700.00
6	Common Stock		10,000.00
7	Retained Earnings		36,100.00
8	Dividends	2,300.00
9	Fees Earned		234,500.00
10	Salary and Commission Expense	145,000.00
11	Rent Expense	29,000.00
12	Advertising Expense	16,700.00
13	Automobile Expense	5,100.00
14	Miscellaneous Expense	4,000.00
15	Totals	293,300.00	293,300.00

The following business transactions were completed by Elite Realty during April 2018. Enter the transactions through the 23rd on Page 18 of the two-column journal:

Apr.	1	Paid rent on office for month, $4,500.
	2	Purchased office supplies on account, $2,200.
	5	Paid insurance premiums, $5,100.
	10	Received cash from clients on account, $53,000.
	15	Purchased land for a future building site for $230,500, paying $22,000 in cash and giving a note payable for the remainder.
	17	Paid creditors on account, $6,100
	20	Returned a portion of the office supplies purchased on April 2, receiving full credit for their cost, $330.
	23	Paid advertising expense, $4,500.

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

Apr.	27	Discovered an error in computing a commission; received cash from the salesperson for the overpayment, $3,000.
	28	Paid automobile expense (including rental charges for an automobile), $1,700.
	29	Paid miscellaneous expenses, $1,800.
	30	Recorded revenue earned and billed to clients during the month, $54,000.
	30	Paid salaries and commissions for the month, $11,900.
	30	Paid dividends, $4,000.
	30	Rented land purchased on April 15 to local merchants association for use as a parking lot in May and June, during a street rebuilding program; received advance payment of $10,200.

	Required:
1.	Record the April 1, 2018, balance of each account in the appropriate balance column of a four-column account, type Balance in the item section, and select a check mark in the Posting Reference column.
2.	Journalize the transactions for April in a two-column journal beginning on Page 18. Refer to the Chart of Accounts for exact wording of account titles. Insert the appropriate posting references in both the journal and the ledger as each item is posted.
3.	Post to the ledger, extending the account balance to the appropriate balance column after each posting. Post in chronological order. For transactions occurring on the same day, post in the order presented in the instructions. Insert the appropriate posting references in both the journal and the ledger as each item is posted.
4.	Prepare an unadjusted trial balance of the ledger as of April 30, 2018.
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 on April 30. Use page 20. (Note: You will not be required to post this entry to the ledger at this time.) (c) Is this error a transposition or slide?

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