This information relates to McCall Real Estate Agency Oct 1

This information relates to McCall Real Estate Agency. Oct. 1 Stockholders invest $30,100 in exchange for common stock of the corporation 2 Hires an administrative assistant at an annual salary of $31,200. 3 Buys office furniture for $3,710, on account 6 Sells a house and lot for E. C. Roads; commissions due from Roads, $10,100 (not paid by Roads at this time). 10 Receives cash of $230 as commission for acting as rental agent renting an apartment. 27 Pays $730 on account for the office furniture purchased on October 3. 30 Pays the administrative assistant $2,600 in salary for October.

Solution

T-accounts

Note: No entry is required on October 2 on hiring the administrative assistant.

Cash		Accounts Receivable
Oct. 1	30100	Oct. 27	730		Oct. 6	10100
Oct. 10	230	Oct. 30	2600
Oct. 31 Bal.	27000				Oct. 31 Bal.	10100
Office Furniture		Accounts Payable
Oct. 3	3710				Oct. 27	730	Oct. 3	3710
Oct. 31 Bal.	3710						Oct. 31 Bal.	2980
Common Stock		Commissions Revenue
		Oct. 1	30100				Oct. 6	10100
							Oct. 10	230
		Oct. 31 Bal.	30100				Oct. 31 Bal.	10330
Salaries Expense
Oct. 30	2600
Oct. 31 Bal.	2600