Question

Oct. 1 Stockholders invest $30,740 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual salary of $38,880. 3 Buys office furniture for $3,630, on account. 6 Sells a house and lot for E. C. Roads; commissions due from Roads, $12,010 (not paid by Roads at this time). 10 Receives cash of $135 as commission for acting as rental agent renting an apartment. 27 Pays $620 on account for the office furniture purchased on October 3. 30 Pays the administrative assistant $3,240 in salary for October.Prepare the debit-credit analysis for each transaction.

Answer 1

Answer:

cash 30,740 debit (+A)

 common stock 30,740 credit (+SE)

no entry- no effect

furniture 3,630 debit (+A)

   account payable 3,630 credit (+L)

Account receivables 12,010 debit (+A)

     commissions revenue   12,010 credit (+R)

cash          135 debit (+A)

        commissions revenue    135  credit (+R)

Accounts payable   620 debit (-L)

       cash                         620 credit (-A)

salaries expense 3,240 debit (+Ex)

         cash              3,240 credit (-A)

Explanation:

Expanded Accounting equation:

Assets + Expenses   = Liabilities + Revenues + Stockholder equity

The left side will increase from debit and decrease from credit

While the right side of the equation increase from credit and decease from debit