Ask Question
19 September, 15:50

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.

+3
Answers (1)
  1. 19 September, 19:27
    0
    cash 30,740 debit (+A)

    common stock 30,740 credit (+SE)

    no entry - no effect

    furniture 3,630 debit (+A)

    account payable 3,630 credit (+L)

    Account receivables 12,010 debit (+A)

    commissions revenue 12,010 credit (+R)

    cash 135 debit (+A)

    commissions revenue 135 credit (+R)

    Accounts payable 620 debit (-L)

    cash 620 credit (-A)

    salaries expense 3,240 debit (+Ex)

    cash 3,240 credit (-A)

    Explanation:

    Expanded Accounting equation:

    Assets + Expenses = Liabilities + Revenues + Stockholder equity

    The left side will increase from debit and decrease from credit

    While the right side of the equation increase from credit and decease from debit
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Oct. 1 Stockholders invest $30,740 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual salary ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers