Question

Question 3 This information relates to the Granby Real Estate Agency. Oct. 1 Stockholders invested $20,000 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual salary of $36,000. 3 Buys office furniture for $3,500 on account. 6 Sells a house and lot for M Springer; commissions due from Springer, $8,000 (not paid by Springer at this time). 10 Receives cash of $140 as commission for acting as rental agent renting an apartment. 27 Pays $700 on account for the office furniture purchased on October 3. 30 Pays the administrative assistant $3,000 in salary for October. 1. Journalize the transactions. You do not have to provide explanations. 2. Post the transactions to T accounts.

Answer 1

Answer Credit 1) Journal Entries Date Accounts Titles & Explanation 1-Oct Cash Common stock Debit 20,000 $ $ 20,000 2-Oct No entry No entry $ - $ 3,500 3-Oct Furniture Equipment Accounts payable $ 3,500 $ 8,000 6-Oct Accounts recievable Service revenue $ 8,000 $ 140 10-OctCash Service revenue $ 140 $ 700 27-Oct|Accounts payable Cash $ 700 30-Oct Salary and wages Expense Cash $ 3,000 $ 3,000

cr amount 2) T-account (ledger) CASH particulars dr amount particulras Opening balance o Accounts payable Common stock 20000 Salary & wages expense Service revenue 140 ending balance (b/f) cr amount 700 3000 16440 particulars Cash ending balance (b/f) ACCOUNTS PAYABLE dr amount particulras 700 opening balance 2800 Furniture equipment L 3500 20140 20140 2500 3500 ACCOUNTS RECEIVABLE dr amount particulras cr amount particulars cr amount particulars opening balance Service revenue COMMON STOCK dr amount particulras Opening balance 20000 Cash 8000 ending balance (b/f) 8000 ending balance (b/f) 20000 8000 8000 20000 20000

FURNITURE EQUIPMENT dr amount particulras cr amount particulars cr amount particulars opening balance Accounts Payable SERVICE REVENUE dr amount particulras Opening balance 8140 Cash Accounts receivable 3500 ending balance (b/f) 3500 ending balance (b/f) 140 8000 8140 8140 SALARIES AND WAGES EXPENSE dr amount particulras cr amount particulars opening balance cash 3000 ending balance (b/f) 3000 3000 3000