Question

Synced to Gradebook Fri Feb 7.2020, 12:59:55 PM (America/New York-05:00) Question 9 View Policies Current Attempt in Progress Presented below is information related to Swifty Corporation Oct. 1 Diane Lexington begins business as a real estate agent with a cash investment of $22.700 in exchange for commo 2 Hires an administrative assistant 3 Purchases office furniture for $2,350, on account 6 Sells a house and lot for N. Fennig bills N. Fennig $3.600 for realty services performed. 27 Pays $1.050 on the balance related to the transaction of October 3. 30 Pays the administrative assistant $2.150 in salary for October Prepare the debit credit analysis for each transaction. If no entry is required, select "No Entry for the account titles and enter Oforth Debit-Credit Analysis Oct. 1 Debits Debit Credits Credit Oct 2 Debits. Debit Credits Credit O e 9 DELL

Answer 1

Journal entry records the transaction as per double entry system of book keeping. There will be a debit and credit for each transactions.

Oct 1.

cash inflow will be debited and stock issued will be credited.

Debit	Cash	Debit	$22,700
Credit	Common Stock	Credit	$22,700

Oct 2.

hiring an administrative assistant does not affect the financial records as there is no account affected from this event.

Debit	No entry	Debit	0
Credit	No Entry	Credit	0

Oct 3.

Office furniture will be debited as itw ill increase the assets.As the furniture is purchased on account account payable will be credited.

Debit	Furniture	Debit	$2,350
Credit	Account payable	Credit	$2,350

Oct 6.

Service performed and billed will result in increase in net income so service revenue will be credited and account receivable will be debited as the cash has not yet been received.

Debit	Account receivable(N. fenning)	Debit	$3,600
Credit	Service Revenue	Credit	$3,600

Oct. 27

Cash paid to accounts payable will reduce cash balance and account payable liability. so cash will be credited and account payable will be debited.

Debit	Account payable	Debit	$1,050
Credit	Cash	Credit	$1,050

Oct 30.

Salary paid is an expense so it will reduce net income and cash balance.Salary expense will be debited and cash will be credited.

Debit	Salary expense	Debit	$2,150
Credit	Cash	Credit	$2,150