Question

Presented below is information related to Kyonggi Real Estate Agency in Suwon.

Oct. 1 Mr. Kim In-Kyu begins business as a real estate agent with a cash investment of ₩18,000,000 in exchange for shares.

Oct. 2    Hires an administrative assistant.

Oct. 3    Purchases office equipment for ₩1,700,000 on account.

Oct. 6    Sells a residential/commercial complex building for Mr. Park Sang-Hyun, and bills Mr. Park ₩4,200,000 for realty services performed.

Oct. 27 Pays ₩900,000 on the balance related to the transaction of October 3.

Oct. 31 Pays the administrative assistant ₩2,800,000 in salary for October.

Date	Explanation	Debit	Credit
Oct. 1	Cash	18,000,000
	Common stock		18,000,000
Oct. 2	No entry required
Oct.3	Equipment	1,700,000
	Account payable		1,700,000
Oct.6	Account receivable	4,200,000
	Service revenue		4,200,000
Oct.27	Account payable	900,000
	cash		900,000
Oct.30	Salaries	2,800,000
			2,800,000

Question 1 . Based on the journal transaction entries made in the above question, post them to the T-formatted ledger accounts. Please show the balance of each account as of October 31.

Answer 1

Beg. Bal. Common Stock Cash 0 Accounts Payable 18,000,000 Salaries expense End. Bal. 900,000 2,800,000 14300000 18,000,000 18,000,000 End. Bal. Common Stock 18,000,000 Beg. Bal. Cash 0 18,000,000 18,000,000 18,000,000 Equipment Beg. Bal. 0 Accounts Payable 17,000,000 End. Bal. 17,000,000 17,000,000 17,000,000 Accounts Payable 900,000 Beg. Bal. 800,000 Equipment Cash End. Bal. 0 17,000,000 1,700,000 17,000,000 Beg. Bal. Service Revenue Accounts Receivable 0 4,200,000 End. Bal. 4,200,000 4,200,000 4,200,000 Service Revenue 4,200,000 Accounts Receivable Profit and Loss Account 4,200,000 4,200,000 4,200,000 Salaries Expense 2,800,000 Profit and Loss Account Cash 2,800,000 2,800,000 2,800,000

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