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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.)

Respuesta :

Explanation:

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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