Financial Transactions for GD Realty - Analyzing Debit Transactions

Purchase of Bank Account

Analyze separately each of the following financial transactions for GD Realty. In each situation, describe the debit portion of the entry before the credit portion. Note that transaction “a” is done for you as an example.a)On March 1, Ginger Denton organized GD Realty by opening a bank account in the company name with a deposit of $100,000 cashb)On March10, the new business purchased an office building in an industrial park for a total price of $500,000of which $170,000 was applicable to land and $330,000 to the building. A cash down payment of $50,000was made and a note payable was issued for the balance of the purchase price.c)On March 17, office equipment was purchased on credit from ADR Company at a price of $9,500. The account payable was to be paid on April 17.d)On March 21, a portion of the office equipment purchased on March 17was found to be defective and returned to ADR Company. ADR agreed that GD Realty should not be charged for the defective equipment and gave GD a refund for the cost of the defective equipment of $1,200 upon its return.e)On April 17, the remaining portion of the liability to ADR was paid in full.

2f)On April 29, GD realty sold their first property, the property sold for $650,000. Commission on the sale is 2.5% of the selling price. Funds will not be released toGD realty for another few days. Prepare the journal entry to record this sale on Ap