Question

Recording Transactions Exercise: E2-4 The following information relates to Sanculi Real Estate Agency Oct. 1 Alan Sanculi begins business as a real estate agent with a cash investment of $15,000. 2 Hires an administrative assistant. 3 Purchases offi ce furniture for $1,900, on account. 6 Sells a house and lot for R. Craig; bills R. Craig $3,800 for realty services performed. 27 Pays $1,100 on the balance related to the transaction of October 3. 30 Pays the administrative assistant $2,500 in salary for October. Instructions Prepare the debit-credit analysis for each transaction. E2-5 Transaction data for Sanculi Real Estate Agency are presented in E2-4.

Answer 1

debit credit analysis for the given transactions

Oct 1 Debit   cash account 15,000 - increase assets

credit capital account 15,000 - increases shareholders equity

Oct 2 : no entry is required until  the person starts working

Oct 3 debit office furniture $19,00 - increases assets

credit accounts payable $19,00 - increases liabilities

Oct 6 debit accounts receivable $38,00- increases assets

credit service/ commission revenue $38,00- increases equity

Oct 27 debit Accounts Payable $11,00 - decreases liabilities

credit cash $11,00 - decreases assets

Oct 30  debit salary $25,00- decreases equity

credit cash $25,00 - decreases assets