Question

Journalize the transactions.

 

Oct.  1	Diane Lexington begins business as a real estate agent with a cash investment of $20,000 in exchange for common stock.
2	Hires an administrative assistant.
3	Purchases office furniture for $2,300, on account.
6	Sells a house and lot for N. Fennig; bills N. Fennig $3,600 for realty services performed.
27	Pays $850 on the balance related to the transaction of October 3.
30	Pays the administrative assistant $2,500 in salary for October.

 

Answer 1

Date	Account Titles & Explanation	Debit$	Credit$
oct -01	Cash A/C	20,000
	To Common Stock A/C		20,000
	( To Record investment of capital)
Oct -02	No Entry Required
Oct -03	Office Furniture A/C	2,300
	To Accounts Payable A/C		2,300
	(To record purchase of office furniture on account)
Oct -06	Accounts Receivable A/C	3,600
	To Service Revenue A/C		3,600
	(To record Sale of house to N Fenning
Oct -27	Accounts Payable A/C	850
	To Cash A/C		850
	(To record payment of office furniture
Oct -30	Salaries Expense A/C	2,500
	To Cash A/C		2,500
	(To record payment of salary to assistant

Answer to the above question clearly shown in the expalantion option