Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month: Rafael Masey transferred cash from a personal bank

On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month: 
  1. Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for Common Stock, $28,000.
  2. Purchased supplies on account, $1,530.
  3. Earned sales commissions, receiving cash, $23,520.
  4. Paid rent on office and equipment for the month, $5,170.
  5. Paid creditor on account, $560.
  6. Paid dividends, $1,390.
  7. Paid automobile expenses (including rental charge) for month, $1,430, and miscellaneous expenses, $960.
  8. Paid office salaries, $3,010.
  9. Determined that the cost of supplies used was $850.

Required:

 1.  Journalize entries for transactions (a) through (i), using the following account titles: Cash, Supplies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. If an amount box does not require an entry, leave it blank.


Prepare T accounts, using the account titles in (1). Post (in chronological order) the journal entries to these accounts, selecting the appropriate letter to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Journal Entries for Planet Realty Transactions August 20Y7 Transaction a Date Aug 1 Description Invested cash in exchange for common stock Debit Common Stock 28000 Credit Cash 28000 Transaction b Date ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic And Investigative Accounting

Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton

10th Edition

0808056301, 9780808056300

More Books

Students also viewed these Accounting questions

Question

How many subnetworks in this LAN configuration? POSTE 3C

Answered: 1 week ago

Question

What places did Augustus hold power in the Roman government

Answered: 1 week ago