Answered

Get comprehensive answers to your questions with the help of IDNLearn.com's community. Get comprehensive answers to all your questions from our network of experienced experts.

Journalize the transactions. ( This information relates to Cheyenne Real Estate Agency. Oct. 1 Stockholders invest $31,770 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual salary of $42,720. 3 Buys office furniture for $3,740, on account.

Sagot :

Answer and Explanation:

The journal entry is given below:

Oct 1

Cash Dr $31,770

   To Common stock $31,770

(Being exchange for the common stock is recorded)

Here cash is debited as it increased the asset and credited the common stock as it also increased the equity

Oct 2

No journal entry is required

Oct 3

Office furniture Dr $3,740

    To Account payable $3,740

(Being office furniture purchased on an account)

Here office furniture is debited as it increased the asset and credited the account payable as it also increased the liabilities

Your presence in our community is highly appreciated. Keep sharing your insights and solutions. Together, we can build a rich and valuable knowledge resource for everyone. Thank you for choosing IDNLearn.com for your queries. We’re committed to providing accurate answers, so visit us again soon.