Question
On October 1, 2018, Jay Crowley established Affordable Realty, which completed the following transactions during the month: Jay Crowley transferred cash from a personal bank
On October 1, 2018, Jay Crowley established Affordable Realty, which completed the following transactions during the month:
Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for Common Stock, $28,000.
Paid rent on office and equipment for the month, $5,050.
Purchased supplies on account, $1,490.
Paid creditor on account, $550.
Earned sales commissions, receiving cash, $22,960.
Paid automobile expenses (including rental charge) for month, $1,400, and miscellaneous expenses, $940.
Paid office salaries, $2,940.
Determined that the cost of supplies used was $830.
Paid dividends, $1,350.
Prepare T accounts, using the account titles in (1). Post the journal entries to these T accounts, selecting the appropriate letter to the left of each amount to identify the transactions. Determine the account balances of the T accounts (when required), after all posting is complete. Accounts containing a single entry only (such as Common Stock) do not need a balance.
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