Question

apter 3 Homework Question 1 of 12 < > View Policies Current Attempt in Progress This information relates to Martinez Real Estate Agency. Oct. 1 Stockholders invest $33,400 in exchange for common stock of the corporation. Hires an administrative assistant at an annual salary of $38,880. Buys office furniture for $3,890, on account Sells a house and lot for E. C. Roads; commissions due from Roads, $11,890 (not paid by Roads at this time). Receives cash of $195 as commission for acting as rental agent renting an apartment. Pays $610 on account for the office furniture purchased on October 3. Pays the administrative assistant $3,240 in salary for October 27 30 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 $ MacBook Air

Answer 1

Oct.1 $33,400 Debits Increase assets Debit Cash Credits Increase stockholders equity Credit Common stock $33,400 Oct.2 Debits No effect Debit No effect Credits No effect Credit No effect Oct.3 $ 3,890 Debits Increase assets Debit Office furniture Credits Increase liabilities Credit Accounts payable $ 3,890 Oct.6 $11.890 Debits Increase assets Debit Account receivable Credits Increase revenue Credit Revenue (It means increase in stock holders equity) $11,890 $ 195 Oct.10 Debits Increase assets Debit Cash Credits Increase revenue Credit Revenue (It means increase in stock holders equity) $ 195 $ 610 Oct.27 Debits Decrease liability Debit Accounts payable Credits Decrease assets Credit Cash $ 610 (It means Decrease in stock holders equity) $ 3,240 Oct 30 Debits Increase expenses Debit Salary expense Credits Decrease assets Credit Cash $ 3,240