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*Exercise 3-10 This information relates to Crofoot Real Estate Agency. Oct. 1 St

ID: 2381953 • Letter: #

Question

*Exercise 3-10

This information relates to Crofoot Real Estate Agency.

Oct. 1 Stockholders invest $30,350 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual salary of $40,200. 3 Buys office furniture for $3,790, on account. 6 Sells a house and lot for M.E. Graves; commissions due from Graves, $10,340 (not paid by Graves at this time). 10 Receives cash of $140 as commission for acting as rental agent renting an apartment. 27 Pays $770 on account for the office furniture purchased on October 3. 30 Pays the administrative assistant $3,350 in salary for October. This information relates to Crofoot Real Estate Agency. Stockholders invest $30,350 in exchange for common stock of the corporation. Hires an administrative assistant at an annual salary of $40,200. Buys office furniture for $3,790, on account. Sells a house and lot for M.E. Graves; commissions due from Graves, $10,340 (not paid by Graves at this time). Receives cash of $140 as commission for acting as rental agent renting an apartment. Pays $770 on account for the office furniture purchased on October 3. Pays the administrative assistant $3,350 in salary for October. Prepare a trial balance at October 31, 2014.

Explanation / Answer

DR Cash 30,350

CR Common Stock 30,350


No entry required


DR Fixed assets- furniture 3,790


CR Accounts Payable 3,790


DR Accounts Receivable 10,340


CR Commissions revenue 10,340


Dr Cash 140

CR Commissions Revenue 140


Dr Accounts Payable 770

CR Cash 770


DR Salaries expense 3,350

CR Cash 3,350