Exercise 2-5 Presented below is information related to Lexington Real Estate Age
ID: 2396040 • Letter: E
Question
Exercise 2-5 Presented below is information related to Lexington Real Estate Agency Oct. 1 Diane Lexington begins business as a real estate agent with a cash investment of $20,000 in exchange for common stock. 2 Hires an administrative assistant. 3 Purchases office furniture for $2,300, on account. 6 Sells a house and lot for N. Fennig; bills N. Fennig $3,600 for realty services performed. 27 Pays $850 on the balance related to the transaction of October 3. 30 Pays the administrative assistant $2,500 in salary for October. Journalize the transactions. (Credit account titles are automatially indented when the amount is entered. Do not indent m entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit .Policx 1 2000-2018 John Wiley & Sons-Ins. All Rights Reserved. A Division of John Wiley &Sona.Inc.;Explanation / Answer
Oct 1 cash (debit) 20,000
common stock (credit) 20,000
oct 2 NO ENTRY
oct 3 office furniture (debit) 2,300
accounts payable (credit) 2,300
oct 6 Accounts receivable (debit) 3,600
Service revenue (credit) 3,600
oct 27 Accounts payable (debit) 850
cash (credit) 850
oct 30 Salaries expense (debit) 2,500
cash (credit) 2,500
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