Question

Current Attempt in Progress Pina Colada Corp. has the following transactions during August of the current year. Aug. 1 Aug. 4 Aug. 16 Aug. 27 Issues shares of common stock to investors in exchange for $10,880. Pays insurance in advance for 3 months, $1,500. Receives $880 from clients for services rendered. Pays the secretary $680 salary. 1 Indicate the basic analysis and the debit-credit analysis.

Answer 1

Basic-Analysis and Debit - Credit Analysis

Date	Basic Analysis	Debit - Credit Analysis
August 1	The asset Cash is increased	Debit increase assets
	The Shareholders equity account, Common stock is increased	Debit Cash $10880
		Credit increases stockholders equity
		Credit Common stock $10880
August 4	The asset prepaid insurance is increased	Debit increases assets
	The asset cash is decreased	Debit prepaid insurance $1500
		Credit decreases assets
		Credit Cash $1500
August 16	The asset cash is increased	Debit increases assets
	The revenue service, revenue is increased	Debit Cash $880
		Credit increases revenue
		Credit service revenue $880
August 27	The expense, Salaries expense is increased	Debit increases expenses
	The asset Cash is decreased	Debit salaries expenses $680
		Credit decreases assets
		Credit Cash $680

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