Question

Part A Listed below are the transactions for Ajayi Art, Inc. for the month of October: . October 1 Started with an investment of $300,000 cash. ·October 1 Purchased office equipment for S25,500 by signing a 1096 note (interest and principal to be paid over the next 12 months). October 6 Paid rent for the art gallery in advance for the next three months with a check for $4,050. October 8 Purchased art supplies from Wacky Art Co. on credit for $12,500. October 9 Received of $4,850 from a customer who has commissioned a piece of custom art to be completed by the end of the year. October 11 Paid miscellaneous office expenses totaling S514 in cash. October 13 Billed customers $10,340 for art classes provided in September October 15 Paid $5,830 to Wacky Art Co. . October 20 Received $4,020 from customers on account. October 30 Recorded $5,180 in salaries for the month of October. Paychecks will be disbursed to employees on November 2nd WI

Answer 1

Ans.	Date	Accounts and Titles				Dr.($)	Cr.($)
	Oct.1	Capital				300,000
		To Cash					300,000
		(Being business strated with cash)
	Oct.1	Office Equipment				25,500
		To 10% Notes Payable					25,500
		(Being purchase office equipment by signning a 10% note)
	Oct.6	Prepaid Rent				4,050
		To Bank					4,050
		(Being paid 3 months advance rent by check )
	Oct.8	Supplies				12,500
		To Wacky Art Co.					12,500
		(Being purchse supplies on credit)
	Oct.9	Cash				4,850
		To Unearned Revenue					4,850
		(Being received commission from a customer )
	Oct.11	Miscellaneous Office Expense				514
		To Cash					514
		(Being paid misc. office expense in cash)
	Oct.13	Accounts Receivable				10,340
		To Revenue					10,340
		(Being billed to customers for classes provided in september)
	Oct.15	Wacky Art Co.				5,830
		To Cash					5,830
		(Being paid to Wacky Art Co.)
	Oct.20	Cash				4,020
		To Accounts Receivable					4,020
		(Being received cash on account from customers)
	Oct.30	Salaries expense				5,180
		To Outstanding Salaries					5,180
		(Being salaries outstanding for the month of october)