Carlson Real Estate Co. experienced the following events during the organizing phase and its first month of operations. Some of the events were personal for the stockholders and did not affect the business. Others were transactions of the business.

Requirements
1. Classify each of the preceding events as one of the following:
a. A business-related event but not a transaction to be recorded by Carlson Real Estate Co.
b. A business transaction for a stockholder, not to be recorded by Carlson Real Estate Co.
c. A business transaction to be recorded by Carlson Real Estate Co.
2. Analyze the effects of the preceding events on the accounting equation of Carlson Real Estate Co.
3. Record the transactions of the business in its journal. Include an explanation for eachentry.

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Nov 4 Cody Carlson, the major stockholder of a real estate company, received $103,000 cash from an inheritance. Carlson deposited $58,000 cash in a new business bank account titled Carlson Real Estate Co. The business issued common stock to Carlson. The business paid S100 cash for letterhead stationery for the new office. The business purchased office equipment. The company paid cash of $10,000 and agreed to pay the account payable for the remainder, $6,500, within three months. 5 6 7 10 Carlson sold FDR stock, which he had owned for several years, 11 Garlson deposited the $72,500 cash from sale of the FDR 12 A representative of a large company telephoned Carlson and receiving $72,500 cash from his stockbroker. stock in his personal bank account. told him of the business to Carison. Carison finished a real estate deal for a client and submitted his bill for services, S5,500. Carlson expects to collect from the client within two weeks. The business paid half its account payable on the equipment purchased on November 7 company's intention to transfer $11,500 of 18 21 25 The business paid office rent of $1,400 30 The business declared and paid a cash dividend of $2,400