Question

Presented below is information related to Berge Real Estate Agency: Oct. 1 2 3 Lia Berge begins business as a real estate agent with a cash investment of $37,200 Paid rent, $870, on office space. Purchases office equipment for $3,470, on account. Sells a house and lot for Hal Smith; bills Hal Smith $5,460 for realty services performed Pays $1,360 on the balance related to the transaction of October 3. Receives bill for October utilities, $161 (not paid at this time). 6 27 30 Journalize the transactions. (Credit account titles are automatically indented when the amount is entered. Do not entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the problem.) Date Account Titles and Explanation Debit Credit

Answer 1

	In the Books of Berge Real Estate Agency
Date	Account titles and explanation		Debit	Credit
Oct-01	Cash		$             37,200
	Owner's Capital			$         37,200
	(to cash invested to start business)
Oct-02	Rent expense		$                  870
	Cash			$              870
	(to rent paid for office space)
Oct-03	Office Equipment		$               3,470
	Accounts Payable			$           3,470
	(to equipment purchased in cash)
Oct-06	Accounts Receivable		$               5,460
	Service Revenue			$           5,460
	(to billed customer for service performed)
Oct-27	Accounts Payable		$               1,360
	Cash			$           1,360
	(to part payment made for office equipment)
Oct-30	Utilities expense		$                  161
	Utilities payable			$              161
	(to utilities cost billed for usage in october)