Question

On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month:

Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for Common Stock, $32,000.

Purchased supplies on account, $1,750.

Earned sales commissions, receiving cash, $26,880.

Paid rent on office and equipment for the month, $5,910.

Paid creditor on account, $650.

Paid dividends, $1,590.

Paid automobile expenses (including rental charge) for month, $1,640, and miscellaneous expenses, $1100.

Paid office salaries, $3,440.

Determined that the cost of supplies used was $970.

Required:

1. Journalize entries for transactions (a) through (i), using the following account titles: Cash, Supplies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. If an amount box does not require an entry, leave it blank.

a.

b.

c.

d.

e.

f.

g.

h.

i.

Answer 1

Journal entry

No	General Journal	Debit	Credit
a	Cash	32000
	Common Stock		32000
b	Supplies	1750
	Account payable		1750
c	Cash	26880
	Sales commission		26880
d	Rent expense	5910
	Cash		5910
e	Account payable	650
	Cash		650
f	Dividend	1590
	Cash		1590
g	Automobile expense	1640
	Miscellaneous expense	1100
	Cash		2740
h	Salaries expense	3440
	Cash		3440
i	Supplies expense	970
	Supplies		970