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23 September, 19:30

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)
  1. 23 September, 21:53
    0
    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)
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