PROBLEM #1:

Journalize the following business transactions in general journal form. Identify each transaction

by number. You may omit explanations of the transactions.

1.

Stockholders invest $25,000 in cash in starting a real estate office operating as a

corporation.

2.

Purchased $500 of supplies on credit.

3.

Purchased equipment for $15,000, paying $3,500 in cash and signed a 30-day, $11,500,

note payable.

4.

Real estate commissions billed to clients amount to $4,000.

5.

Paid $700 in cash for the current month's rent.

6.

Paid $250 cash on account for office supplies purchased in transaction 2.

7.

Received a bill for $800 for advertising for the current month.

8.

Paid $2,500 cash for office salaries.

9.

Paid $1,200 cash dividends to stockholders.

10.

Received a check for $2,000 from a client in payment on account for commissions billed

in transaction 4.