Information related to Sheridan Company:

Oct.

1 Diane Lexington begins business as a real estate agent with a cash investment of $19,900 in exchange for common stock.

2 Hires an administrative assistant.

3 Purchases office furniture for $2,100, on account.

6 Sells a house and lot for N. Fennig; bills N. Fennig $3,250 for realty services performed.

27 Pays $900 on the balance related to the transaction of October 3.

30 Pays the administrative assistant $2,650 in salary for October.

Required:

Journalize the transactions.

Question

Dalia

Business

11 November, 03:30

Information related to Sheridan Company:

Oct.

1 Diane Lexington begins business as a real estate agent with a cash investment of $19,900 in exchange for common stock.

2 Hires an administrative assistant.

3 Purchases office furniture for $2,100, on account.

6 Sells a house and lot for N. Fennig; bills N. Fennig $3,250 for realty services performed.

27 Pays $900 on the balance related to the transaction of October 3.

30 Pays the administrative assistant $2,650 in salary for October.

Required:

Journalize the transactions.

+5

Answers (1)

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Jose · Answer 1

Oct 1.

Cash $19,900 (debit)

Common Stock $19,900 (credit)

Oct 3.

Office Furniture $2,100 (debit)

Trade Payable $2,100 (credit)

Oct 6.

Trade Receivable: N. Fennig $3,250 (debit)

Revenue $3,250 (credit)

Oct 27.

Trade Payable $900 (debit)

Cash $900 (credit)

Oct 30.

Salary Expense : Administrative Assistant $2,650 (debit)

Cash $2,650 (credit)

Explanation:

In all non-cash entries remember to observe the Accrual or Matching Principle. Thus, transactions must be recorded when they accrue or incur not when they are paid.