This information relates to Cheyenne Real Estate Agency.
Oct. 1 Stockholders invest $31,770 in exchange for common stock of the corporation.
2 Hires an administrative assistant at an annual salary of $42,720.
3 Buys office furniture for $3,740, on account.
6 Sells a house and lot for E. C. Roads; commissions due from Roads, $10,430 (not paid by Roads at this time).
10 Receives cash of $185 as commission for acting as rental agent renting an apartment.
27 Pays $800 on account for the office furniture purchased on October 3.
30 Pays the administrative assistant $3,560 in salary for October.
Prepare the debit-credit analysis for each transaction. (If there is no transaction, then enter no effect for the account and 0 for the amount.)

Answer and Explanation:

The Journal entry is shown below:-

1. Cash Dr,                            $31,770

       To Common stock               $31,770

(Being issuance of shares for cash is recorded)

2. No Journal Entry is required

3. Office furniture Dr,          $3,740

       To Accounts payable           $3,740

(Being purchase of office furniture on credit is recorded)

4. Accounts receivable     $10,430

            To service revenue        $10,430

(Being customer billed for service is recorded)

5. Cash                                $185  

            To credit revenue       $185

(Being cash received for service is recorded)

6. Accounts payable$800  

                To cash                $800

(Being cash paid for office furniture purchased is recorded)

7. Salaries expense Dr, $3560  

               To cash                $3560

(Being salary paid is recorded)

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough