Question

Exercise 3-13

This information relates to McCall Real Estate Agency.

Oct. 1		Stockholders invest $31,200 in exchange for common stock of the corporation.
2		Hires an administrative assistant at an annual salary of $32,520.
3		Buys office furniture for $3,820, on account.
6		Sells a house and lot for E. C. Roads; commissions due from Roads, $10,210 (not paid by Roads at this time).
10		Receives cash of $220 as commission for acting as rental agent renting an apartment.
27		Pays $660 on account for the office furniture purchased on October 3.
30		Pays the administrative assistant $2,710 in salary for October.

Post the transactions to T-accounts. (Post entries in the order of information presented in the question.) Cash AcCounts Receivable Equipment Accounts Payable Common Stock Service Revenue

Answer 1

Cash 31,200 Accounts Payable 220 Salaries and wages Expense closing. Bal. $ Common Stock 660 Service Revenue 2,710 28,050 $ 31,420 31,420 Accounts Receivable Service Revenue 10,210 closing. Bal. 10,210 10,210 10,210 Equipment Accounts Payable 3,820 closing. Bal. 3,820 $ 3,820 3,820 Accounts Payable 660 Equipment Cash 3,820 closing. Bal. 3,160 3,820 3,820 O

Common Stock Cash 31,200 closing. Bal $ 31,200 $ 31,200 31,200 Service Revenue Accounts Receivable $ 10,210 Cash 220 closing. Bal. 10,430 10,430 10,430 Salaries and wages Expense Cash 2,710 closing. Bal 2,710 2,710 2,710

MCCALL REAL ESTATE AGENCY Trial Balance For the year ended October 31, 2017 Debit Credit Cash 28,050 Accounts Receivable 10,210 Equipment Accounts Payable 3,820 3,160 Common Stock 31,200 Service Revenue 10,430 Salaries and wages Expense 2,710 $ Totals 44,790 44,790

Working notes: Accounts titles And Explanations Debit Credit Date Oct-01 Cash 31,200 Common Stock 31,200 (to record issue of common stock) No Entry Oct-02 Equipment Oct-03 3,820 unts Payable A 3,820 |(purchase of office furniture o account) C Accounts Receivable $ Oct-06 10,210 Service Revenue 10,210 (to record commission due from Roads) Cash Oct-10 220 Service Revenue 220 commission) (to record receipt of cash as Accounts Payable Oct-27 660 Cash 660 (to record payments towards Accounts payable) Salaries and wages Expense Oct-30 2,710 Cash 2,710 (to record payment of salaries) on Oct-2 the transaction can not be considered as accountible transaction, so, no entry required