Question

CALCULATOR FULL S Exercise 3-8 This information relates to McCall Real Estate Agency. Oct. 1 Stockholders Invest $33,310 in exchange for common stock of the corporation 2 Hires an administrative assistant at an annual salary of $43,680. 3 Buys office furniture for $3,960, on account. 6 Sells a house and lot for E. C. Roads; commissions due from Roads, $10.670 (not paid by Roads at this time). 10 Receives cash of $140 as commission for acting as rental agent renting an apartment. 27 Pays $780 on account for the office furniture purchased on October 3. 30 Pays the administrative assistant $3,640 in salary for October Prepare the debit-credit analysis for each transaction. (If there is no transaction, then enter No Effect for the account and for the amount.) Oct. 1 Debits Debit Credits Credit Oct. 2 Debits Debit Credits

Answer 1

McCall Real Estate Agency Oct-01 Debits increase assets: Credits increase stockholders' equity: debit Cash credit Common Stock 33310 33310 Oct-02 No accounting transaction. Oct-03 Debits increase assets: Credits increase liabilities: debit Equipment credit Accounts Payable 3960 3960 Oct-06 10670 Debits increase assets: Credits increase revenues: debit Accounts Receivable credit Service Revenue 10670 Oct-10 Debits increase assets: Credits increase revenues: debit Cash credit Service Revenue 140 140 Oct-27 Debits decrease liabilities: Credits decrease assets: debit Accounts Payable credit Cash 780 780 Oct-30 Debits increase expenses: Credits decrease assets: debit Salaries and Wages Expense credit Cash 3640 3640