Question

1. Diane Lexington begins business as a real estate agent with a cash investment of $28,490 in exchange for common stock. 2. Hires an administrative assistant. 3. Purchases office furniture for $3,276, on account. 4. Sells a house and lot for N. Fennig; bills N. Fennig $3,600 for realty services performed.5. Pays $850 on the balance related to the transaction of October 3.6. Pays the administrative assistant $2,500 in salary for October.Date Account Titles Ref. Debit CreditOct. 1 2 3 4 5 6

Answer 1

Answer:

Explanation:

According to the scenario, the following transaction can be put in journal as follows:

Date            Account Titles          Ref.                 Debit ($)        Credit ($)

Oct. 1              Cash                                                          $28,490

                      Common stock                                                                 $28,490

Oct.2               No journal

Oct.3              Office furniture                                          $3,276

                      Accounts payable                                                              $3,276

Oct.4              Account receivable                                   $3,600

                      Revenue on service                                                           $3,600

Oct.5              Accounts payable                                     $850

                      Cash                                                                                    $850

Oct.6              Salary expense                                         $2,500

                      Cash                                                                                    $2,500