Question

This information relates to Monty Real Estate Agency. Oct. 1 Stockholders invest $34,040 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual salary of $32,880. 3 Buys office furniture for $4,110, on account. 6 Sells a house and lot for E. C. Roads; commissions due from Roads, $10,780 (not paid by Roads at this time). 10 Receives cash of $165 as commission for acting as rental agent renting an apartment. 27 Pays $690 on account for the office furniture purchased on October 3. 30 Pays the administrative assistant $2,740 in salary for October. 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.)

Answer 1

Solution:

Journal Entry:

No.of Event	Date	Account title and Explanation	Debit ($)	Credit ($)
1.	Oct.1	Cash	34,040
		Common stock		34,040
		(To record stockholders invest)
2.	Oct.2	No Entry	0
		No Entry		0
3.	Oct.3	Equipment	4,110
		Accounts payable		4,110
		(To record purchase office equipment)
4.	Oct.6	Accounts Receivable	10,780
		Service Revenue		10,780
		(To record sells a house)
5.	Oct.10	Cash	165
		Service Revenue		165
		(To record receive commissions)
6.	Oct.27	Accounts payable	690
		Cash		690
		(To record pay office equipment)
7.	Oct.30	Salaries and wages expenses	2,740
		Cash		2,740
		(To record pay the administrative assistant)