Question

CALCULATOR FULL SCREEN PRINTER VIRS Exercise 3-8 This information relates to McCall Real Estate Agency Oct. 1 Stockholders invest $30,570 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual salary of $38,520. 3 Buys office furniture for $3,730, on account. 6 Sells a house and lot for E.C. Roads; commissions due from Roads, $10,980 (not paid by Roads at this time). 10 Receives cash of $200 as commission for acting as rental agent renting an apartment 27 Pays $790 on account for the office furniture purchased on October 3. 30 Pays the administrative assistant $3,210 in salary for October Prepare the debit-credit analysis for each transaction.(f there is no transaction, then enter No Effect for the account and O for the amount Oct. 1 Debits Oct. 2 Debits 5 6

Answer 1

		Debit and Credit Analysis
Date	Transaction	Debit	$	Credit	$
1-Oct	Owner's capital investment	Cash	30,570	Common Stock	30,570
2-Oct	Hiring of employee	No effect	-	No effect	-
3-Oct	Purchase of furniture on credit	Furniture	3,730	Accounts Payable	3,730
6-Oct	Commission earned	Accounts Receivable	10,980	Commission Revenue	10,980
10-Oct	Commission income	Cash	200	Commission Revenue	200
27-Oct	Cash paid to Accounts payable	Accounts Payable	790	Cash	790
30-Oct	Salary paid to assistant	Salary Expense	3,210	Cash	3,210
		TOTAL	49,480	TOTAL	49,480