Question

The first two pictures are the questions. The following pictures are the choices for column (a), debits, and credit.

Brief Exercise 2-5 Concord Corporation has the following transactions during August of the current year. Indicate (a) the effect on the assets, liabilities, stockholders' equtity, revenue, or expenses and (b) the debit-credit analysis. Aug. 1 4 Opens an office as a financial advisor, investing $5,600 in cash in exchange for common stock. Pays insurance in advance for 6 months, $1,900 cash. Receives $1,600 from clients for services performed. Pays secretary $1,850 salary. 16 27

Answer 1

Aug 1	The asset Cash is increased;	Debits increase assets
	the stockholders' equity account Common stock is increased	debit Cash $ 5600
		Credits increase stockholders' equity
		credit Common stock $ 5600
Aug 4	The asset Prepaid insurance is increased;	Debits increase assets
	the asset Cash is decreased	debit Prepaid insurance $ 1900
		Credits decrease assets
		credit Cash $ 1900
Aug 16	The asset Cash is increased;	Debits increase assets
	the revenue Service revenue is increased	debit Cash $ 1600
		Credits increase revenues
		credit Service revenue $ 1600
Aug 27	The expense Salaries and wages expense is increased;	Debits increase expenses
	the asset Cash is decreased.	debit Salaries and wages expense $ 1850
		Credits decrease assets
		credit Cash $ 1850