I need help with this. This information relates to Picket Real Estate Agency. Oc
ID: 2442874 • Letter: I
Question
I need help with this. This information relates to Picket Real Estate Agency.
Oct. 1 Sockholders invest $30,000 in exchange for common stock of the corporation.
2. Hires an administrative assistant at an annual salary of $42,000.
3 .Buys office furniture for $4,600, on account.
6. Sells a house and lot for M.E. Petty; commisions due from Petty,$10,800 (not paid by Petty at this time).
10. Receives cash of $140 as commission for acting as rental agent renting an apartment.
27. Pays $700 on account for the office furniture purshased on October 3.
30. Pays the administrative assistant $3,500 in salary for October.
Journalise transactions and determine their effect on accounts
prepare the debit-credit analysis for each transaction.
Explanation / Answer
1. Cash 30,000 debit increase Common stock 30,000 credit increase 2. No entry 3.Office Furniture 4,600 debit increase Account Payable 4,600 credit increase 6. Commision Receiv 10,800 debit increase Revenue/commission 10,800 credit increase 10. Cash 140 debit increase Revenue/commission 140credit increase 27. Account payable 700 debit decrease Cash 700 credit decrease 30. Salary Expense 3500 debit increase Cash 3500 credit decrease