ACCOUNTS PAYABLE For Hammerton Autos, a used-car dealer, the following transactions occurred during the first 10 days of August:

a. Hammerton purchased, on credit, space for classified advertisements in the Chicago Tribune for $245. The advertising was run the day the space was purchased.

b. Hammerton purchased office supplies from Office Depot on credit in the amount of $185.

c. One of Hammerton’s sales staff sold a car. The salesperson’s commission is $100.

The commission will be paid September 10.

(Concern yourself only with the commission.)

d. The electric bill for July was received. The bill is $239 and is due August 15.

e. A $390 bill from Carey Alignment services was received. Carey had aligned 10 cars for Hammerton in late July. The payment is due August 20.

Required:

Prepare journal entries for the above transactions. Assume that Hammerton prepares annual financial statements on December 31.

Exercise