Question

Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions.
1. The Company issues stock in exchange for $35,000.
2. Purchased $400 of office supplies on credit.
3. Purchased office equipment for $8,000, paying $2,000 in cash and signed a 30-day, $6,000, note payable.
4. Real estate commissions billed to clients amount to $4,000.
5. Paid $700 in cash for the current month's rent.
6. Paid $200 cash on account for office supplies purchased in transaction 2.
7. Received a bill for $600 for advertising for the current month.
8. Paid $2,200 cash for office salaries.
9. The Company paid dividends of $1,200.
10. Received a check for $3,000 from a client in payment on account for commissions billed in transaction 4

Answer 1

Answer:

1. Dr   cash   35000

        Cr        Share capital     35000

2.Dr Office supplies  400

        Cr   Account payable   400

3. Dr Office equipment    8000

              Cr              Cash                 2000

              Cr        Notes payable       6000

4. Dr Commission receivable  4000

                     Commission income      4000

5. Dr Rent expense      700

           Cr     Cash                700

6. Dr Account payable   200

                Cr    Cash                   200

7. Dr Advertising expense     600

                  Accounts payable       600

8. Dr salaries expense       2200

          Cr      Cash                        2200

9.a)Dr Retained earning    1200

                 Cr   Dividend payable     1200

  b) Dr  Dividend payable      1200

               Cr     Cash                          1200

10. Dr Bank           3000

             Cr commission receivable     3000

Explanation:\

9. First dividend has to be declared then it is paid.