Question

This information relates to Blue Real Estate Agency.

Oct. 1		Stockholders invest $30,700 in exchange for common stock of the corporation.
2		Hires an administrative assistant at an annual salary of $33,480.
3		Buys office furniture for $4,100, on account.
6		Sells a house and lot for E. C. Roads; commissions due from Roads, $11,270 (not paid by Roads at this time).
10		Receives cash of $215 as commission for acting as rental agent renting an apartment.
27		Pays $770 on account for the office furniture purchased on October 3.
30		Pays the administrative assistant $2,790 in salary for October.

Prepare the debit–credit analysis for each transaction. (If there is no transaction, then enter No Effect for the account and 0 for the amount.)

Oct. 1
Oct. 2
Oct. 3
Oct. 6
Oct. 10
Oct. 27
Oct. 30

Answer 1

$30,700 $ 30,700 $ $ $ Oct.1 Debits Increase assets Debit Cash Credits Increase in Stockholders' Equity Credit Common Stock Oct.2 Debits No Effect Debits No Effect Credits No Effect Credits No Effect Oct.3 Debits Increase assets Debit Equipment Credits Increase Liabilities Credit Accounts Payable Oct.6 Debits Increase assets Debit Accounts Receivable Credits Increase Revenue Credit Service Revenue $ 4,100 $ 4,100 $11,270 $11,270

$ 215 $ 215 Oct.10 Debits Increase assets Debit Cash Credits Increase Revenue Credit Service Revenue Oct.27 Debits Decrease liabilities Debit Accounts payable Credits Decrease assets Credit Cash Oct.30 Debits Increase Expenses Debit Salaries and Wages Expense Credit Decrease assets Credit Cash $ 770 $ 770 $ 2,790 $ 2,790