Question

This information relates to Swifty Real Estate Agency. Oct. 1 Stockholders invest $30, 180 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual salary of $43,800. 3 Buys office furniture for $4,010, on account. 6 Sells a house and lot for E. C. Roads; commissions due from Roads, $11,120 (not paid by Roads at this time). 10 Receives cash of $175 as commission for acting as rental agent renting an apartment. 27 Pays $790 on account for the office furniture purchased on October 3. 30 Pays the administrative assistant $3,650 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

Answer 1

Ans:

Date	Account Titles and Explanation	Debit	Credit
Oct-01	Cash	$ 30,180.00
	Common stock		$ 30,180.00
	(To record issuance of common stock)
Oct-02	No entry required
Oct-03	Furniture	$    4,010.00
	Accounts payable		$    4,010.00
	(To record pirchase of Furniture)
Oct-06	Accounts receivable	$ 11,120.00
	Service revenue		$ 11,120.00
	(To record revenue earned)
Oct-10	Cash	$        175.00
	Service revenue / Commission income*		$        175.00
	(To record revenue earned)
Oct-27	Accounts payable	$        790.00
	Cash		$        790.00
	(To record payment of Furniture)
Oct-30	Salaries expense	$    3,650.00
	Cash		$    3,650.00
	(To record salaries expense)