Question

This information relates to Flint Real Estate Agency.

Oct. 1 Stockholders invest $30,740 in exchange for common stock of the corporation.
2 Hires an administrative assistant at an annual salary of $38,880.
3 Buys office furniture for $3,630, on account.
6 Sells a house and lot for E. C. Roads; commissions due from Roads, $12,010 (not paid by Roads at this time).
10 Receives cash of $135 as commission for acting as rental agent renting an apartment.
27 Pays $620 on account for the office furniture purchased on October 3.
30 Pays the administrative assistant $3,240 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.)
A. Oct. 1 Debits increase assets:
debit Cash $ 30000
Credits increase stockholders' equity:
credit Common stock $ 30000
B. Oct. 2 Debits increase no effect:
debit___ $______
Credits increase ______
credit ____$_______
C. Oct 3 Debits increase assets:
debit ______ $ 4600
Credits increase liabilities:
credit Accounts payable $ 4600 .
D. Oct. 6 Debits increase :_____
debit ____ $_____
Credits increase :____
credit ___ $____
E. Oct. 10 Debits increase assets:
debit ___ Cash $ 140
Credits increase ____
credit ____ $____
F. Oct 27 Debits decrease :_____
debit_____ $____
Credits decrease :___
credit____ $.____
G. Oct 30 Debits increase :____
debit ____ $____
Credits decrease :_____
credit ___ $.____

Answer 1

Flint Real Estate Agency

A. Oct. 1 Debits increase assets:

debit Cash $ 30,740

Credits increase stockholders' equity:

credit Common stock $ 30,740

B. Oct. 2 Debits increase no effect:

debit___ $__0____

Credits increase __0____

credit ____$____0___

C. Oct 3 Debits increase assets:

debit _Office furniture_____ $ 3,630

Credits increase liabilities:

credit Accounts payable $ 3,630.

D. Oct. 6 Debits increase :_____assets

debit _Accounts receivable___ $__12,010___

Credits increase :_stockholders' equity___

credit _Service Revenue__ $_12,010___

E. Oct. 10 Debits increase assets:

debit ___ Cash $ 135

Credits increase __stockholders' equity__

credit _Commission Revenue___ $__135_

F. Oct 27 Debits decrease :__Liabilities___

debit__Accounts payable___ $__620__

Credits decrease :_Assets__

credit__Cash__ $.__620__

G. Oct 30 Debits increase :__Expenses__

debit _Salaries expense___ $_3,240___

Credits decrease :__Assets___

credit _Cash__ $.__3,240__

Step-by-step explanation:

a) Data and Analysis:

Oct. 1 Cash $30,740 Common stock $30,740

Oct. 3 Office furniture $3,630 Accounts payable $3,630

Oct. 6 Accounts receivable (E. C. Roads) $12,010 Service Revenue $12,010

Oct. 10 Cash $135 Commission Revenue $135

Oct. 27 Accounts payable $620 Cash $620

Oct. 30 Salaries Expense $3,240 Cash $3,240