Presented Below Is Information Related to Pickett Real Estate Agency

question 26

Essay

Presented below is information related to Pickett Real Estate Agency.
Oct. 1 Jeff Pickett begins business as a real estate agent with a cash investment of $30,000 in exchange for common stock.
2 Hires an administrative assistant.
3 Purchases office equipment for $3,500, by paying $500 cash with the balance on account.
6 Sells a house and lot for N. Foster, earning a fee of $6,900 with $900 collected in cash and the balance billed to N. Foster.
27 Pays $1,000 on the balance related to the transaction of October 3.
30 Pays the administrative assistant $2,300 in salary for October.
31 Collects $1,500 of the balance owed by N. Foster.
Instructions
1. Journalize the transactions. (You may omit explanations.)
2. What balance would Pickett Real Estate Agency report for Accounts Payable in its October 31 financial statements? In which category of which financial statements would it be found?
3. What balance would Pickett Real Estate Agency report for Accounts Receivable in its October 31 financial statements? In which category of which financial statements would it be found?

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Definitions:

Marketplace

A platform, location, or service where transactions between buyers and sellers are facilitated.

Joint Stock Company

A company whose stock is owned jointly by the shareholders, who have the rights to transfer their shares and are liable only to the extent of their investment.

Shares Of Stock

Represents units of ownership interest in a corporation or financial asset, providing a distribution of profits in the form of dividends.

Partnership Certificates

Documents issued by a partnership that certify ownership of a share in the partnership's profits, losses, and assets.