Question

Brief Exercise 3-10 Riverbed Corp has the following transactions during August of the current year. Aug. 1 Issues shares of common stock to investors in exchange for $10,330. Aug. 4 Pays insurance in advance for 3 months, $1,510. Aug. 16 Receives $980 from clients for services rendered. Aug. 27 Pays the secretary $550 salary. Indicate the basic analysis and the debit-credit analysis.

Answer 1

Basic Analysis Debit-Credit analysis Aug-01 The asset Cash is increased the stockholders equity account Common stock is increased Debits Increase Asset Debit Cash $ 10,330 Credits Increases stock holders equity Credit Common stock $ 10,330 Aug-04 The asset Prepaid Insurance is increased The asset Cash is decreased Debit increase asset Debit Prepaid Rent $ 1,510 Credit Decreases asset Credit Cash $ 1,510 Aug-16 The asset Cash is increases The revenue Service revenue is increased Debit increase asset Debit Cash $ 980 Credits increase Revenue Credit Service revenue $ 980 Aug-27 The expense Salary expense increases The asset Cash is decreases Debits increase expense Debit Salary expense $ 550 Credits decrease cash Credit cash $ 550