Question

Exercise 3-8 This information relates to McCall Real Estate Agency. Oct. 1 2 6 10 27 30 Stockholders invest $29,490 in exchange for common stock of the corporation. Hires an administrative assistant at an annual salary of $37,560. Buys office furniture for $4,010, on account. Sells a house and lot for E. C. Roads; commissions due from Roads, $10,910 (not paid by Roads at this time). Receives cash of $145 as commission for acting as rental agent renting an apartment. Pays $630 on account for the office furniture purchased on October 3. Pays the administrative assistant $3,130 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 o for the amount.) Oct. 1 Debits Debit Credits Credit Oct. 2 Debits Debit Credits Credit Oct. 3 Debits

Answer 1

Answer: Oct. 1 Increase Assets Cash 29,490 29,490 Oct. 2 Oct. 3 4,010 Debits Debit Credits Credit Debits Debit Credits Credit Debits Debit Credits Credit Debits Debit Credits Credit Debits Debit Credits Credit Increase Stockholders' Equity Common Stock No Effect No Effect No Effect No Effect Increase Assets Office Furniture Increase Liability Accounts Payable Increase Assets Accounts Receivable Increase Stockholders' Equity Retained Earnings Increase Assets Cash Increase Stockholders' Equity Retained Earnings 4,010 Oct. 6 10,910 10,910 Oct. 10 145 145

Oct. 27 630 630 Debits Debit Credits Credit Debits Debit Credits Credit Decrease Liability Accounts Payable Decrease Cash Cash Decrease Stockholders' Equity Retained Earnings Decrease Assets Cash Oct. 30 3,130 3,130