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19 June, 08:49

This information relates to McCall Real Estate Agency.

Oct. 1 Stockholders invest $30,960 in exchange for common stock of the corporation.

2 Hires an administrative assistant at an annual salary of $39,960.

3 Buys office furniture for $3,630, on account.

6 Sells a house and lot for E. C. Roads; commissions due from Roads, $11,130 (not paid by Roads at this time).

10 Receives cash of $230 as commission for acting as rental agent renting an apartment.

27 Pays $640 on account for the office furniture purchased on October 3.

30 Pays the administrative assistant $3,330 in salary for October.

Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

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Answers (1)
  1. 19 June, 09:13
    0
    The journal entries are as follows

    1. Cash A/c Dr $30,960

    To Common stock A/c $30,960

    (Being the cash is invested in exchange for common stock)

    2. No journal entry is required

    3. Office furniture A/c Dr $3,630

    To Account payable A/c $3,630

    (Being the office furniture is purchased on account)

    4. Account receivable A/c Dr $11,130

    To Service revenue $11,130

    (Being the goods are sold on credit)

    5. Cash A/c Dr $230

    To Service revenue A/c $230

    (Being cash received is recorded)

    6. Account payable A/c Dr $640

    To Cash A/c $640

    (Being the payment is made)

    7. Salaries expense A/c Dr $3,330

    To Cash A/c $3,330

    (Being the salaries is paid for cash)
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