Question

Exercise 3-9 This information relates to McCall Real Estate Agency. Oct. 1 Stockholders invest $33,540 in exchange for common stock of the corporation 2 Hires an administrative assistant at an annual salary of $41,520. 3 Buys office furniture for $3,690, on account. 6 Sells a house and lot for E. C. Roads; commissions due from Roads, $11,190 (not paid by Roads at this time) 10 Receives cash of $155 as commission for acting as rental agent renting an apartment. 27 Pays $660 on account for the office furniture purchased on October 3. 30 Pays the administrative assistant $3,460 in salary for October. Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the the problem.) Date Account Titles and Explanation Debit Credit

Answer 1

Date	Particulars	Debit	Credit
1-Oct	Cash	33,540
	Common Stock		33,540
	(To record the common stock issued)
2-Oct	No journal entry because only agreement has been entered
3-Oct	Office furniture	3,690
	Accounts payable		3,690
	(To record the service revenue earned on account)
6-Oct	Accounts receivable	11,190
	Service revenue		11,190
	(To record the service revenue earned on account)
10-Oct	Cash	155
	Service revenue		155
	(To record the service revenue earned)
27-Oct	Accounts Payable	660
	Cash		660
	(To record the payment of office furniture purchased)
30-oct	Salary expense	3,460
	Cash		3,460
	(To record the salaries paid to administrative staff)