Journal Entries and Trial Balance

On January 1, 2014, Faith Schultz established Heavenly Realty, which completed the following transactions during the month:

Faith Schultz transferred cash from a personal bank account to an account to be used for the business in exchange for capital stock, $25,000.

Paid rent on office and equipment for the month, $4,510.

Purchased supplies on account, $1,330.

Paid creditor on account, $490.

Earned sales commissions, receiving cash, $20,500.

Paid automobile expenses (including rental charge) for month, $1,250, and miscellaneous expenses, $840.

Paid office salaries, $2,620.

Determined that the cost of supplies used was $740.

Paid dividends, $1,210.

Journalize entries for transactions (a) through (i) (in chronological order), using the following account titles: Cash, Supplies, Accounts Payable, Capital Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. For a compound transaction, if an amount box does not require an entry, leave it blank.

Heavenly Realty Journal entries can be found in the attached file

Explanation:

Dr Bank with $25,000

Cr. Capital Stock with $25,000

(being Faith Schultz transferred cash in exchange for Capital stock)

Dr. Rental of Office & equipment with $4,510

Cr. Bank with $4,510

(Being Rental costs for Office and Equipment)

Dr. Supplies with $1,330

Cr. Accounts Payable with $1,330

(Being cost of purchased supplies)

Dr. Supplies Expense with $740

Cr. Supplies with $740

(Being cost of supplies used)

Dr Accounts Payable with $490

Cr. Bank with $490

(being payment to Creditors)

Dr. Cash with $20,500

Cr. Sales commission with $20,500

(Being Sales Commission received)

Dr. Automobile Expense with $1,250

Dr. Miscellaneous Expense with $840

Cr. Bank with $2,090

(being  payment for automobile expense, rental charges & Miscellaneous expense)

Dr Office Salaries with $2,620

Cr. Bank with $2,620

(Being Payment for Office Salaries)

Dr Dividend with $1,210

Cr Bank with $1,210

(Being payment of Dividend)

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.

answer the law of increasing costs;