Oct. 1 Pete Hanshew begins business as a realestate agent with a cash investment

ID: 2433628 • Letter: O

Question

Oct. 1 Pete Hanshew begins business as a realestate agent with a cash investment of

$ 15,000.

Debit Cash $1,500

Credit Owner's Equity (Pete Hanshew CapitalInvestment) $1,500

Receivedcash from Pete as his capital contribution.

2 Hires an administrative assistant.

Noentry required

3 Purchases office furniture for $1,900, on account.

Debit Office Furniture $1,900

Credit Accounts Payable $1,900

Purchasedoffice furniture on account for $1,900

6 Sells a house and lot for B. Kidman; bills B. Kidman $3,200 for realtyservices

provided.

Debit B.Kidman $3,500

Credit Service Revenue $3,500

Billedfor agency services to B.Kidman for $3,500

27 Pays $700 on the balance related to the transaction of October 3

Debit Accounts payable $700

Credit Cash $700

Paidcash on account against purchase of office furniture

30 Pays the administrative assistant $2,500 in salary for October.

Debit Salaries expense &

Oct.1 Cash $1,500

Owner's Equity (Pete Hanshew CapitalInvestment) $1,500

2 No entry required

3 OfficeFurniture $1,900

AccountsPayable $1,900

6 B.Kidman $3,500

ServiceRevenue $3,500

27 Accountspayable $700

Cash $700

30 Salariesexpense $2,500

Cash

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