Jones Real Estate Co. experienced the following events during the organizing phase and its fi rst month of operations. Some of the events were personal for the stockholders and did not aff ect the business. Others were transactions of the business.

Requirements
1. Classify each of the preceding events as one of the following:
a. A business-related event but not a transaction to be recorded by Jones Real Estate Co.
b. A business transaction for a stockholder, not to be recorded by Jones Real Estate Co.
c. A business transaction to be recorded by the Jones Real Estate Co.
2. Analyze the effects of the preceding events on the accounting equation of Jones Real Estate Co.
3. Record the transactions of the business in its journal. Include an explanation for eachentry.

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Evan Jones, the major stockholder of a real estate company, received $107,000 cash from an inheritance Jones deposited $54,000 cash in a new business bank account titled Jones Real Estate Co. The business issued common stock to Jones. Nov 4 5 6 The business paid S1,000 cash for letterhead stationery for the new office 7The business purchased office equipment. The company paid cash of $9,500 and agreed to pay the account payable for the remainder, $7,500, within three months. Jones sold CDM stock, which he owned for several years, receiving $73,000 cash from his stock broker Jones deposited the $73,000 cash from sale of the CDM stock in his personal bank account. A representative of a large company telephoned Jones and told him of the company's intention to transfer $14,500 of business to Jones. Jones finished a real estate deal for a client and submitted his bill for services, $4,500. Jones expects to collect from the client within two weeks. The business paid half its account payable for the equipment purchased on November 7. The business paid office rent of $1,000. The business declared and paid a cash dividend of $1,800. 10 11 12 18 21 25 30