Question

Kenneth Jones opened a real estate agency called Kenneth Jones Realty & recorded the following transactions. Use the acctg equation to record the transactions into journals and T-accounts.

May 1              Invested $10,000 in the business.

May 1              Shared an office with another realtor and paid $2,000 for May rent.

May 3              Paid $400 for May’s janitorial services.

May 3              Paid company cash for office supplies at Office Max for $570.

May 9              Sold a home and immediately collected a commission of $7,400.

May 12            Sold a home but did not immediately collect the commission of $8,200 due to complications at closing.

May 14            Purchased stamps at the U. S. Post Office for $125 using a credit card, which is recorded as Accounts Payable.

May 16            Charged on account an advertisement announcing the opening of the realty business at the Commercial Appeal, $85.

May 17            Sold a home and immediately collected the commission, $4,500

May 18            Bought a computer and printer on account for $1,200.

May 18            Purchased Microsoft office software to install on the computer for $150.

May 18            Signed up for a monthly internet connection to the computer and immediately paid $25 for May.

May 22            Collected the commission of May 12; complications have been resolved.                           

May 23            Paid the month’s telephone bill, $185.

May 24            Paid ½ of the month’s utility bill of $350. Kenneth’s share is $175.

May 31            Kenneth withdrew $2,500 of business cash for personal use.

May 31            Paid $1,900 to a secretary-receptionist.

Answer 1