Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions.

1. The Company issues stock in exchange for $35,000.

2. Purchased $400 of office supplies on credit.

3. Purchased office equipment for $8,000, paying $2,000 in cash and signed a 30-day, $6,000, note payable.

4. Real estate commissions billed to clients amount to $4,000.

5. Paid $700 in cash for the current month's rent.

6. Paid $200 cash on account for office supplies purchased in transaction 2.

7. Received a bill for $600 for advertising for the current month.

8. Paid $2,200 cash for office salaries.

9. The Company paid dividends of $1,200.

10. Received a check for $3,000 from a client in payment on account for commissions billed in transaction 4

Question

Business

Sidney Cohen

14 October, 10:27

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions.

1. The Company issues stock in exchange for $35,000.

2. Purchased $400 of office supplies on credit.

3. Purchased office equipment for $8,000, paying $2,000 in cash and signed a 30-day, $6,000, note payable.

4. Real estate commissions billed to clients amount to $4,000.

5. Paid $700 in cash for the current month's rent.

6. Paid $200 cash on account for office supplies purchased in transaction 2.

7. Received a bill for $600 for advertising for the current month.

8. Paid $2,200 cash for office salaries.

9. The Company paid dividends of $1,200.

10. Received a check for $3,000 from a client in payment on account for commissions billed in transaction 4

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Answers (1)

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Tomas Clay · Answer 1

1. Dr cash 35000

Cr Share capital 35000

2. Dr Office supplies 400

Cr Account payable 400

3. Dr Office equipment 8000

Cr Cash 2000

Cr Notes payable 6000

4. Dr Commission receivable 4000

Commission income 4000

5. Dr Rent expense 700

Cr Cash 700

6. Dr Account payable 200

Cr Cash 200

7. Dr Advertising expense 600

Accounts payable 600

8. Dr salaries expense 2200

Cr Cash 2200

9. a) Dr Retained earning 1200

Cr Dividend payable 1200

b) Dr Dividend payable 1200

Cr Cash 1200

10. Dr Bank 3000

Cr commission receivable 3000

Explanation:/

9. First dividend has to be declared then it is paid.