Question

ACCOUNT TITLE DEBIT CREDIT Journalize the following business transactions for a real estate companyin general journal form. 1 May Stockholders invest 540,000 in cash in exchange for common stock DATE 2-May Purchased $500 of supplies on credit 1-May Purchased equipment for $25,000, paying $3,500 in cash and signed a 30- 3 May day, $21,500 note payable 4-May Real estate commissions billed to clients amount to $4,000 5-May Paid $250 cash on account for office supplies purchased on May 2. 2. May 6-May Received a bill for $800 for advertising for the current month 3- May 7-May Paid $1,200 cash dividends to stockholders 4. May 5.May 6.May 7. May

Answer 1

Journal

Date	Account title	Debit	Credit
May 1	Cash	40,000
	Common stock		40,000
May 2	Supplies	500
	Accounts payable		500
May 3	Equipment	25,000
	Cash		3,500
	Notes payable		21,500
May 4	Accounts receivable	4,000
	Commission revenue		4,000
May 5	Accounts payable	250
	Cash		250
May 6	Advertising expense	800
	Accounts payable		800
May 7	Dividends	1,200
	Cash		1,200

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