Question

1. Jenny Johnson opened a realty business, Johnson Realty and had the following transactions during the month of May:
   

May 1	Jenny invested $12,000 cash into the business in exchange for common stock
May 2	Purchased supplies on account, $150
May 3	Paid May’s rent for the office space, $400
May 5	Paid for a three month insurance policy covering June-Aug, $300
May 6	Received a cash commission of $3,000 for the sale of a house
May 10	Paid salaries, $1,200
May 12	Paid utilities, $75
May15	Paid for supplies previously purchased on May 2
May 25	Received $500 cash in advance of selling a house
May 31	Paid $250 cash dividends

1. Prepare journal entries for each of the above transactions.
2. Post the transactions into T-accounts.
3. Prepare a trial balance for the month ended May 31, 2013.
   

Answer 1

Date	Account title and explanation	Debit	Credit
May. 1	Cash	12,000
	Common stock		12,000
May. 2	Supplies	150
	Accounts payable		150
May. 3	Rent expense	400
	Cash		400
May. 5	Prepaid insurance	300
	Cash		300
May. 6	Cash	3000
	Commission revenue		3000
May. 10	Salaries expense	1200
	Cash		1200
May. 12	Utilities expense	75
	Cash		75
May. 15	Accounts payable	150
	Cash		150
May. 25	Cash	500
	Unearned commission revenue		500
May. 31	Cash dividends	250
	Cash		250

B.

C.