Question

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

1. Stockholders invest $39,000 in cash in starting a real estate office operating as a corporation.

2. Purchased $600 of supplies on credit.

3. Purchased equipment for $23,500, paying $3,900 in cash and signed a 30-day, $19,600, note payable.

4. Real estate commissions billed to clients amount to $4,600.

5. Paid $650 in cash for the current month's rent.

6. Paid $300 cash on account for office supplies purchased in transaction 2.

7. Received a bill for $850 for advertising for the current month.

8. Paid $2,700 cash for office salaries.

9. Paid $1,450 cash dividends to stockholders.

10. Received a check for $2,300 from a client in payment on account for commissions billed in transaction 4.

Answer 1

Date	Account titles and explanation	Debit	Credit
1.	Cash	$39000
	Common stock		$39000
	(To record cash invested)
2.	Supplies	$600
	Accounts payable		$600
	(To record supplies purchased on credit)
3.	Equipment	$23500
	Cash		$3900
	Notes payable		$19600
	(To record equipment purchased)
4.	Accounts receivable	$4600
	Service revenue		$4600
	(To record real estate commissions billed to clients)
5.	Rent expense	$650
	Cash		$650
	(To record rent expense)
6.	Accounts payable	$300
	Cash		$300
	(To record cash paid for office supplies purchased)
7.	Advertising expense	$850
	Cash		$850
	(To record advertising expense paid)
8.	Salaries expense	$2700
	Cash		$2700
	(To record office salaries paid)
9.	Cash dividends	$1450
	Cash		$1450
	(To record cash dividends paid)
10.	Cash	$2300
	Accounts receivable		$2300
	(To record check received from a client)