Question

On October 1, 2018, Jay Crowley established Affordable Realty, which completed the following transactions during the month:

Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for Common Stock, $28,000.

Paid rent on office and equipment for the month, $5,050.

Purchased supplies on account, $1,490.

Paid creditor on account, $550.

Earned sales commissions, receiving cash, $22,960.

Paid automobile expenses (including rental charge) for month, $1,400, and miscellaneous expenses, $940.

Paid office salaries, $2,940.

Determined that the cost of supplies used was $830.

Paid dividends, $1,350.

Prepare T accounts, using the account titles in (1). Post the journal entries to these T accounts, selecting the appropriate letter to the left of each amount to identify the transactions. Determine the account balances of the T accounts (when required), after all posting is complete. Accounts containing a single entry only (such as Common Stock) do not need a balance.

Answer 1

CASH
common stock issued	28000	Rent on office and equipment	5050
sales commission earned	22960	paid to creditors	550
		miscellaneous expenses	940
		Automobile expense	1400
		office salaries	2940
		Dividend paid	1350
Bal 31/10	38730

Common stock
		common stock issued for Cash	28000
		Balance 31/10	28000

Rent expense
Rent on office and equipment	5050
Balance 31/10	5050

Supplies
pURchase supplied on account	1490	supplies used	830
Bal 31/10	660

Accounts payable
paid cash	550	supplies on account	1490
		Balance 31/10	940

Commission Income
		Sales commission earned	22960
		Bal 31/10	22960

Automobile expense
Rental expense paid	1400
Bal 31/10	1400

miscellaneous expenses
cash paid	940
Bal 31/10	940

Office salaries
cash paid for salaries	2940
Bal 31/10	2940

Supplies expense
supplies used	830
Bal 31/10	830

Dividend
Dividend paid	1350
Bal 31/10	1350