Problem 6: Journal Entries (21 points) Journalize the following business transac
ID: 2399580 • Letter: P
Question
Problem 6: Journal Entries (21 points) Journalize the following business transactions in general journal form.Identify each transaction by number. You may omit explanations of the transactions. 1. Stockholders invest $25,000 in cash in starting a real estate offie operating as a corporation. 2. Purchased $500 of supplies on credit. 3. Purchased equipment for $15,000, paying $3,500 in cash and signed a 30-day, $11,500 note payable. 4. Real estate commissions billed to clients amount to $4,000. 5. Paid $700 in cash for the current month's rent. 6. Paid $250 cash on account for office supplies purchased in transaction 2 7. Received a bill for $800 for advertising for the current month. 8. Paid $2,500 cash for office salaries. 9. Paid $1,200 cash dividends to stockholders. 10. Received a check for $2,000 from a client in payment on account for commissions billed in transaction 4.Explanation / Answer
SOLUTION:
Debit Credit 1 Cash $25,000 Common stock $25,000 2 Office supplies $500 Accounts payable $500 3 Office equipment $15,000 Cash $3,500 Notes payable $11,500 4 Accounts receivable $4,000 Real Eestate Commission Revenue $4,000 5 Rent expense $700 Cash $700 6 Accounts payable $250 Cash $250 7 Advertisement Expense $800 Accounts payable $800 8 Office salaries expense $2,500 Cash $2,500 9 Dividends $1,200 Cash $1,200 10 Cash $2,000 Accounts receivable $2,000