resented below is information related to Lexington Real Estate Agency. Journaliz

Question

resented below is information related to Lexington Real Estate Agency.

Journalize the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

6-4

Date

Explanation

Units

Unit Cost

Total Cost

44

$99

$ 4,356

77

105

8,085

34

106

3,604

85

111

9,435

240

$25,480

(a)

FIFO

LIFO

(a)

Oct. 1 Diane Lexington begins business as a real estate agent with a cash investment of $25,898 in exchange for common stock. 2 Hires an administrative assistant. 3 Purchases office furniture for $2,978, on account. 6 Sells a house and lot for N. Fennig; bills N. Fennig $4,662 for realty services performed. 27 Pays $1,101 on the balance related to the transaction of October 3. 30 Pays the administrative assistant $3,237 in salary for October.

Explanation / Answer

Cash Account

To Common stock

(Being cash invested in Business)

$25,898

Furniture Account

To Creditor for furniture

(Being Furniture bought on account)

$2,978

Cash Account

To Realty services performed/Income received  

(Being cash received for services performed)

$4,662

Creditor for furniture

To Cash Account

(Being cash paid for outstanding balance )

$1,101

Salary Account

To Cash Account

(Being salary paid to administrative assistant)

$3,237

Date Account titles and explanation Debit Credit Oct 1

Cash Account

To Common stock

(Being cash invested in Business)

$25,898

$25,898

Oct 2 No entry Oct 3

Furniture Account

To Creditor for furniture

(Being Furniture bought on account)

$2,978

$2,978

Oct 6

Cash Account

To Realty services performed/Income received  

(Being cash received for services performed)

$4,662

$4,662

Oct 27

Creditor for furniture

To Cash Account

(Being cash paid for outstanding balance )

$1,101

$1,101

Oct 30

Salary Account

To Cash Account

(Being salary paid to administrative assistant)

$3,237

$3,237

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