JOURNAL ENTRIES Journalize the following business transactions in general journa
ID: 2419479 • Letter: J
Question
JOURNAL ENTRIES
Journalize the following business transactions in general journal form. You may omit explanations of the transactions.
a. On January 1st, shareholders invest $55,000 cash to start a real estate office, in exchange for common shares.
Date
Account
Debit
Credit
b) On January 2nd, purchased office equipment for $6,000, paying $2,500 in cash and signing a 30-day, note payable for the remainder.
Date
Account
Debit
Credit
c) On January 2nd paid $1,400 in cash for current month and next month’s rent.
Date
Account
Debit
Credit
d) On January 7th billed $5,400 in real estate commissions to clients for services provided.
Date
Account
Debit
Credit
e) On January 31st paid $1,000 cash dividends to shareholders.
Date
Account
Debit
Credit
f) On January 31st paid $2,500 cash for office salaries
Date
Account
Debit
Credit
g) On February 1st received a $6,000 cheque from a client, $5,400 in payment on account for commissions billed on January 7th and the balance for services not yet performed.
Date
Account
Debit
Credit
Date
Account
Debit
Credit
Explanation / Answer
(All amounts in $) a. On January 1st, shareholders invest $55,000 cash to start a real estate office, in exchange for common shares. Date Account Debit Credit 01-Jan Cash A/c 55000 Common Stock A/c 55000 b) On January 2nd, purchased office equipment for $6,000, paying $2,500 in cash and signing a 30-day, note payable for the remainder. Date Account Debit Credit 02-Jan Office Equipment A/c 6000 Cash A/c 2500 Note Payable A/c 3500 c) On January 2nd paid $1,400 in cash for current month and next month’s rent. Date Account Debit Credit 02-Jan Rent A/c 700 Prepaid Rent A/c 700 Cash A/c 1400 d) On January 7th billed $5,400 in real estate commissions to clients for services provided. Date Account Debit Credit 07-Jan Accounts Receivable A/c 5400 Services Provided A/c 5400 e) On January 31st paid $1,000 cash dividends to shareholders. Date Account Debit Credit 31-Jan Dividends Paid A/c 1000 Cash A/c 1000 f) On January 31st paid $2,500 cash for office salaries Date Account Debit Credit 31-Jan Office Salaries A/c 2500 Cash A/c 2500 g) On February 1st received a $6,000 cheque from a client, $5,400 in payment on account for commissions billed on January 7th and the balance for services not yet performed. Date Account Debit Credit 01-Feb Bank A/c 6000 Accounts Receivable A/c 4500 Unearned Revenue A/c 1500
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