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.

Question

Business

Chance Garner

28 December, 22:43

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.

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Sky · Answer 1

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