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 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 Cash 30,000 Common Stock 30,000 Oct. 2 No Entry 0 No Entry 0 Oct. 3 Utilities Expense 3,800 Accounts Payable 3,800

Answer 1

The correct answer is office supplies instead of utilities expense because ourchasing furniture for the office comes under office expense or office equipment .