Question

This information relates to Cheyenne Real Estate Agency. Oct. 1 Stockholders invest $31,770 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual salary of $42,720. 3 Buys office furniture for $3,740, on account. 6 Sells a house and lot for E. C. Roads; commissions due from Roads, $10,430 (not paid by Roads at this time). 10 Receives cash of $185 as commission for acting as rental agent renting an apartment. 27 Pays $800 on account for the office furniture purchased on October 3. 30 Pays the administrative assistant $3,560 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 Debit Credits Credit $ $

Answer 1

SOLUTION:

Oct-01	Debit	Increase Assets
	Debit	Cash $31,770
	Credit	Increase Stockholders’ Equity
	Credit	Common Stock $31,770
Oct-02	Debit	No effect
	Debit	No effect
	Credit	No effect
	Credit	No effect
Oct-03	Debit	Increase Assets
	Debit	Equipment $3,740
	Credit	Increase Liabilities
	Credit	Accounts Payable $3,740
Oct-06	Debit	Increase Assets
	Debit	Cash $10,430
	Credit	Increae Revenue
	Credit	Service Revenue $10,430
Oct-10	Debit	Increase Assets
	Debit	Cash $185
	Credit	Increae Revenue
	Credit	Service Revenue $185
Oct-27	Debit	Decrease Liabilities
	Debit	Accounts Payable $800
	Credit	Decrease Assets
	Credit	Cash $800
Ooct-30	Debit	Increase Expenses
	Debit	Salaries and Wages Expense $3,560
	Credit	Decrease Assets
	Credit	Cash $3,560