Question

rio Selected transactions for Ibrahem Berhad are as follows: 1. Stockholders invest RM40,000 in cash in starting a real estate office operating as a corporation. Purchased RM500 of supplies on credit. Purchased equipment for RM25,000, paying RM3,500 in cash and signed a 30- day, RM21,500, note payable. Real estate commissions billed to clients amount to RM4,000. Paid RM700 in cash for the current month's rent. Paid RM250 cash on account for office supplies purchased in transaction 2 Received a bill for RM800 for advertising for the current month. Paid RM2,500 check for office salaries. Paid RM1,200 cash dividends to stockholders. Received a check for RM2,000 from a client in payment on account for commissions billed in transaction 4 wonosoin Required: Journalize the above transactions in General Journal form. Explanations are not required. (10 marks) (Total 25 marks)

Answer 1

Credit Account title & explanation 1 Cash Common Stock Debit 40,000 40,000 500 2 Supplies Accounts Payable 500 25,000 3 Equipment Cash Notes Payable 3,500 21,500 4,000 4 Accounts Receivable Real estate commissions Revenue 4,000 700 5 Rent expense Cash 700 250 6 Accounts Payable Cash 250 800 7 Advertising expense Advertising payable 800 2,500 8 Salaries expense Cash 2,500

1,200 9 Dividend Cash 1,200 2,000 10 Cash Accounts Receivable 2,000 84 85