Question

Question 3 of 7 > View Policies Current Attempt in Progress Bramble 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 $10,700. Pays insurance in advance for 3 months. $1,860. Receives $830 from clients for services rendered. Pays the secretary $670 salary. Indicate the basic analysis and the debit-credit analysis,

Answer 1

Basic Analysis					Debit-Credit Analysis
Aug. 1	The Asset	Cash	is	Increased	Debits	Increase assets
	The stockholders' equity account	Common stock	is	Increased	Debit	Cash
						$10,700
					Credits	Increase stockholder's equity
					Credit	Common stock
						$10,700
Aug.4	The asset	Prepaid insurance	is	Increased	Debits	Increase assets
	The asset	Cash	is	Decreased	Debit	Prepaid insurance
						$1,860
					Credits	Decrease assets
					Credit	Prepaid insurance
						$1,860
Aug 16	The asset	Cash	is	Increased	Debits	Increase assets
	The revenue	Service revenue	is	Increased	Debit	Cash
						$830
					Credits	Increase revenues
					Credit	Service revenue
						$830
Aug 27	The expense	Salary expense	is	Increased	Debits	Increase expenses
	The asset	Cash	is	Decreased	Debit	Salary expense
						$670
					Credits	Decrease assets
					Credit	Cash
						$670