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 No Effect Cash Credits No Effect Credit Common Stock Oct.2 Debits No Effect Debit No Effect

Answer 1

Above question is about preparation of debit- credit analysis. Refer a below image for more detailed solution.

solution : preparation of Debit a credit analysis : oct 1. Debits credits increase increase assets ensuity : & debit credit cash $31830 share capital a ordinary $ 31830 octa. No transaction Oct 3- Debits Credits increase increase assets liabilities : & debit Credit equipment & 3910 Accounts payable $3910 oct 6 . Debits credits increase increase assets revenue & & debit accounts receivable & 11300 credit service revenue & 41300 oct 1o . Debits credits increase increase assets revenues & : debit creder cash $190 service revenue &190 oct az Debits decrease credits decrease liabilities assets : debit accounts : credit cash payable 8610 $610 increase expenses : Oct 30. Debits credits debit salaries & wages expense $3200 credit cash & 3200 decrease assets &