Question

In Accounting

View Policies Current Attempt in Progress Sheffield Corp. has the following transactions during August of the current year. Aug. 1 Issues shares of common stock to investors in exchange for $10.990. Aug.4 Pays insurance in advance for 3 months, $1,890. Aug. 16 Receives $770 from clients for services rendered. Aug. 27 Pays the secretary $590 salary. Indicate the basic analysis and the debit-credit analysis. Basic Analysis Debit-Credit Analysis Aug. The asset Debits Debit the stockholders' equity account is Credits Credit Aug The asset Aug The asset is Debits Debit the asset is . Credits Credit Aug. The asset Debits 16 Debit the revenue is C . Credits Credit Aug. The expense Debits 27 Debit the asset Credits Credit

Answer 1

	Basic analysis	Debit-Credit analysis
Aug. 1	The asset cash is increased	Debits increases assets
	The stockholders' equity account common stock is increased	Debit cash
		$ 10,990
		Credits increases stockholders' equity
		Credit common stock
		$ 10,990
Aug. 4	The asset prepaid insurance is increased	Debits increases assets
	The asset cash is decreased	Debit prepaid insurance
		$ 1,890
		Credits decreases assets
		Credit cash
		$ 1,890
Aug. 16	The asset cash is increased	Debits increases assets
	The revenue service revenue is increased	Debit cash
		$ 770
		Credits increases revenues
		Credit service revenue
		$ 770
Aug. 27	The expense salaries expense is increased	Debit increases expenses
	The asset cash is decreased	Debit salaries expense
		$ 590
		Credits decreases assets
		Credit cash
		$ 590