Question

This information relates to McCall Real Estate Agency. Oct. 1 2 3 6 10 27 30 Stockholders invest $ 29,200 in exchange for common stock of the corporation. Hires an administrative assistant at an annual salary of $30,120. Buys office furniture for $3,620, on account. Sells a house and lot for E. C. Roads; commissions due from Roads, $10,010 (not paid by Roads at this time). Receives cash of $140 as commission for acting as rental agent renting an apartment. Pays $670 on account for the office furniture purchased on October 3. Pays the administrative assistant $2,510 in salary for October Post the transactions to T-accounts. (Post entries in the order of information presented in the question.)

Answer 1

ANS :-

To start with, I am providing you the detailed T Accounts as below:-

Cash
01-Oct	To common Stock	29,200	27-Oct	By Accounts Payable	670
10-Oct	To Service Revenue	140	30-Oct	By Salaries and Wages Expense	2,510
			30-Oct	By Balance C/F	26,160
		29,340			29,350
Accounts Receivable
06-Oct	To Service Revenue	10,010	30-Oct	By Balance C/F	10,010
		10,010			10,010
Equipment
03-Oct	To Accounts Payable	3,620	30-Oct	By Balance C/F	3,620
		3,620			3,620
Accounts Payable
27-Oct	To Cash	670	03-Oct	By Equipment	3,620
30-Oct	To Balance C/F	2,950
		3,620			3,620
Common Stock
30-Oct	To Balance C/F	29,200	01-Oct	By Cash	29,200
		29,200			29,200
Service Revenue
30-Oct-19	By Profit & loss A/C	10,150	06-Oct	By Account Receivable	10,010
			10-Oct	By Cash	140
		10,150			10,150
Salaries and Wages Expense
30-Oct	To Cash	2,510	30-Oct	By Profit & Loss A/C	2,510
		2,510			2,510

Now, I am providing you the T Accounts in your Format

Cash
01-Oct	29,200	27-Oct	670
10-Oct	140	30-Oct	2,510
	29,340		3,180
Accounts Receivable
06-Oct	10,010
	10,010		-
Equipment
03-Oct	3,620
	3,620		-
Accounts Payable
27-Oct	670	03-Oct	3,620
	670		3,620
Common Stock
		01-Oct	29,200
	-		29,200
Service Revenue
		06-Oct	10,010
		10-Oct	140
	-		10,150
Salaries and Wages Expense
30-Oct	2,510
	2,510		-

Trial balance for the month of October

Account	Debit	Credit
Cash	26,160
Account receivable	10,010
Equipment	3,620
Accounts Payable		2,950
Common Stock		29,200
Service Revenue		10,150
Salaries and Wages Expense	2,510
	42,300	42,300

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