This information relates to Cheyenne Real Estate Agency.

Oct. 1 Stockholders invest $31,770 in exchange for common stock of the corporation.

2 Hires an administrative assistant at an annual salary of $42,720.

3 Buys office furniture for $3,740, on account.

6 Sells a house and lot for E. C. Roads; commissions due from Roads, $10,430 (not paid by Roads at this time).

10 Receives cash of $185 as commission for acting as rental agent renting an apartment.

27 Pays $800 on account for the office furniture purchased on October 3.

30 Pays the administrative assistant $3,560 in salary for October.

Prepare the debit-credit analysis for each transaction. (If there is no transaction, then enter no effect for the account and 0 for the amount.)

Question

Chaz Rowland

Business

13 October, 22:50

This information relates to Cheyenne Real Estate Agency.

Oct. 1 Stockholders invest $31,770 in exchange for common stock of the corporation.

2 Hires an administrative assistant at an annual salary of $42,720.

3 Buys office furniture for $3,740, on account.

6 Sells a house and lot for E. C. Roads; commissions due from Roads, $10,430 (not paid by Roads at this time).

10 Receives cash of $185 as commission for acting as rental agent renting an apartment.

27 Pays $800 on account for the office furniture purchased on October 3.

30 Pays the administrative assistant $3,560 in salary for October.

Prepare the debit-credit analysis for each transaction. (If there is no transaction, then enter no effect for the account and 0 for the amount.)

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Answers (1)

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Natalie Hodge · Answer 1

Answer and Explanation:

The Journal entry is shown below:-

1. Cash Dr, $31,770

To Common stock $31,770

(Being issuance of shares for cash is recorded)

2. No Journal Entry is required

3. Office furniture Dr, $3,740

To Accounts payable $3,740

(Being purchase of office furniture on credit is recorded)

4. Accounts receivable $10,430

To service revenue $10,430

(Being customer billed for service is recorded)

5. Cash $185

To credit revenue $185

(Being cash received for service is recorded)

6. Accounts payable $800

To cash $800

(Being cash paid for office furniture purchased is recorded)

7. Salaries expense Dr, $3560

To cash $3560

(Being salary paid is recorded)