This information relates to Hanshew Real Estate Agency.Oct. 1 Stockholders invested $35,000 in exchange for common stock of the corporation.2 Hires an administrative assistant at an annual salary of $36,000.3 Buys equipment for $3,500 on account.6 Performed services (ie, sold a house and lot for a customer) worth $10,000 that will be paid within 30 days.10 Borrows $6,000 from a local bank with an annual interest rate of 3%. The principle on the loan is not due until next year.27 Pays $700 on account for the equipment purchased on October 3.30 Pays the administrative assistant $3,000 in salary for OctoberThe journal to record the transaction on October 1 would be:Multiple ChoiceOdebit stockholder's equity for $35.000; credit cash for $35,000.no entry required.

Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…

Answered: The journal to record the transaction…

Business

Accounting

The journal to record the transaction on October 1 would be:

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter13: Choice Of Business Entity—general Tax And Nontax Factors/formation

Section: Chapter Questions

Problem 56P

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James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and Trust. He permits some customers to sign short-term notes for their purchases. He usually discounts these notes at the bank. Following are selected transactions that occurred in March 20X1. DATE TRANSACTIONS 20X1 Mar. 4 Mr. Howard borrows $20,000 from the bank on a note payable for the business. Terms of the note are 8 percent interest for 45 days. 11 A 90-day $18,000 note payable to the bank is discounted at a rate of 10 percent. 22 Sold a car to Darnell Jones for $30,000 on a 75-day note receivable, bearing interest at 10 percent. 23 Discounted the Jones note with the bank. The bank charges a discount rate of 12 percent. 25 Sold a car for $30,000 to Henry Thomas. Thomas paid $4,000 cash and signed a 30-day note, bearing interest at 10 percent, for the balance. 28 Alfred Herron's account receivable is overdue. Howard requires him to sign a 12…