Information related to Sheridan Company: Oct.
1 Diane Lexington begins business as a real estate agent with a cash investment of $19,900 in exchange for common stock.
2 Hires an administrative assistant.
3 Purchases office furniture for $2,100, on account.
6 Sells a house and lot for N. Fennig; bills N. Fennig $3,250 for realty services performed.
27 Pays $900 on the balance related to the transaction of October 3.
30 Pays the administrative assistant $2,650 in salary for October.

Required:
Journalize the transactions.

Oct 1.

Cash $19,900 (debit)

Common Stock $19,900 (credit)

Oct 3.

Office Furniture $2,100 (debit)

Trade Payable $2,100 (credit)

Oct 6.

Trade Receivable:  N. Fennig $3,250 (debit)

Revenue $3,250 (credit)

Oct 27.

Trade Payable $900 (debit)

Cash $900 (credit)

Oct 30.

Salary Expense : Administrative Assistant $2,650 (debit)

Cash $2,650 (credit)

Explanation:

In all non-cash entries remember to observe the Accrual or Matching Principle.Thus, transactions must be recorded when they accrue or incur not when they are paid.

c.

clarify customers’ doubts only when asked.

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