Question

This information relates to Indigo Real Estate Agency. Oct. 1 Stockholders invest $31,830 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual salary of $38,400. 3 Buys office furniture for $3,910, on account. 6 Sells a house and lot for E. C. Roads; commissions due from Roads, $11,300 (not paid by Roads at this time). 10 Receives cash of $190 as commission for acting as rental agent renting an apartment. 27 Pays $610 on account for the office furniture purchased on October 3. 30 Pays the administrative assistant $3,200 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 for the amount.) Oct. 1 Debits Debit Credits Credit Oct. 2 Debits Debit Credits Credit Oct. 3 Debits Debit

Answer 1

Soutlon Greneral Ledger Date Gredit Debit oct i Bonk al c 31830 Common stock 31930 L Being Common stock Issued] oct 2 No entriy oct 3 office furniture 3৭৷० Accounts payable 3910 [Beeng office furniture purchased on Crudit] oct 6 Ec Roadz 11300 Commission Income 11300 L Betng Commission receivable from Ec Roady ] Cash/ Bank oct 1o 190 Commission Income 190 [Beung Commission Income recaved ACCOUnts payable octa7 610 Cash / Bank 610 2Beeng partial peyment for hitore purchesed] made oct 30 Salary Заоо Cash / Bank 3200 [Bung Salary payment made]

Answer 2

Date	Debits	Credits
Oct.   1	Increase Assets Cash $31,830	Increase Stockholder’s Equity Common Stock $31,830
Oct.   2	No Effect No Effect $0	No Effect No Effect $0
Oct.   3	Increase Assets Equipment $3,910	Increase Liabilities Accounts Payable $3,910
Oct.   6	Increase Assets Accounts Receivable $11,300	Increase Revenues Service Revenue $11,300
Oct.   10.	Increase Assets Cash $190	Increase Revenues Service Revenue $190
Oct.   27	Decrease Liabilities Accounts Payable $610	Decrease Assets Cash $610
Oct.   30	Increase Expenses Salaries and Wages Expense $3,200	Decrease Assets Cash $3,200