Question

This information relates to McCall Real Estate Agency. Oct. 1 2 3 6 Stockholders invest $30,000 in exchange for common stock of the corporation. Hires an administrative assistant at an annual salary of $36,000. Buys office furniture for $3,800, on account. Sells a house and lot for E. C. Roads; commissions due from Roads, $10,800 (not paid by Roads at this time). Receives cash of $140 as commission for acting as rental agent renting an apartment. Pays $700 on account for the office furniture purchased on October 3. Pays the administrative assistant $3,000 in salary for October. 10 27 30 Journalize the transactions. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Oct. 1

Answer 1

Based on the information available in the question, we can answer as follows:-

Date	Particulars	Amount	Amount
October 1	Cash a/c	30,000
	To Common stock a/c		30,000
	(To record the exchange of cash for common stock)
October 2	No Journal entry required
October 3	Office Furniture A/c	3,800
	To Accounts Payable A/c		3,800
	(To record the purchae of furniture on credit)
October 6	Accounts Receivable A/c	10,800
	To Service Revenue A/c		10,800
	(To record the accounts receivable for service revenues)
October 10	Cash A/c	140
	To Service Revenue A/c		140
	(To record the revenue earned and received)
October 27	Accounts Payable A/c	700
	To Cash a/c		700
	(To settle the dues for the purchase of office furniture)
October 30	Salaries Expense A/c	3,000
	To Cash a/c		3,000
	(To record the salaries paid)