Question

Exercise 3-09 This information relates to Ayayal Real Estate Agency. Oct. 1 Stockholders invest $31,460 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual salary of $31,800. 3 Buys office furniture for $3,810, on account. 6 Sells a house and lot for E. C. Roads; commissions due from Roads, $11,020 (not paid by Roads at this time), 10 Receives cash of $230 as commission for acting as rental agent renting an apartment 27 Pays $780 on account for the office furniture purchased on October 3. 30 Pays the administrative assistant $2,650 in salary for October.

Answer 1

Date	Accounts Titles and Explanation	Debit	Credit
Oct 1	Cash	31,460
	Common Stock		31,460
	(To record issue of shares)
Oct 2	No Entry	0
	No Entry	0
Oct 3	Equipment	3,810
	Accounts Payable		3,810
	(To record purchase of furniture)
Oct 6	Accounts Receivable	11,020
	Service Revenue		11,020
	(To record service revenue)
Oct 10	Cash	230
	Service Revenue		230
	(To record service revenue)
Oct 27	Accounts Payable	780
	Cash		780
	(To record payment made for furniture purchased)
Oct 30	Salaries and Wages Expense	2,650
	Cash		2,650
	(To record salary payment)