Question

Presented below is information related to Windsor Company.

Oct. 1 Diane Lexington begins business as a real estate agent with a cash investment of $16,800 in exchange for common stock.
2 Hires an administrative assistant.
3 Purchases office furniture for $2,500, on account.
6 Sells a house and lot for N. Fennig; bills N. Fennig $3,400 for realty services performed.
27 Pays $1,100 on the balance related to the transaction of October 3.
30 Pays the administrative assistant $2,650 in salary for October.

Required:
Journalize the transactions.

Answer 1

Date Account Titles Debit Credit

Oct 1 Cash $16,800

Common Stock $16,800

Oct 2 No journal entry - -

Oct 3 Office Furniture $2,500

Accounts Payable $2,500

Oct 6. Accounts Receivable $3, 400

Service Revenue $3,400

Oct 27 Accounts Payable $1,100

Cash $1,100

Oct 30 Salaries Expense $2,650

Cash $2,650