iPad 3:00 PM edugen.wileyplus.com 60% Exercise 3-8 HWO3Ch03 This information rel

Question

iPad 3:00 PM edugen.wileyplus.com 60% Exercise 3-8 HWO3Ch03 This information relates to McCall Real Estate Agency. Oct. 1 Stockholders invest $29,490 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual salary of $37,560 3 Buys office furniture for $4,010, on account. 6 Sells a house and lot for E. C. Roads; commissions due from Roads, $10,910 (not paid by Roads at this time). 10 Receives cash of $145 as commission for acting as rental agent renting an apartment. 27 Pays $630 on account for the office funiture purchased on October 3 30 Pays the administrative assistant $3,130 in salary for October. Objective 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 29490 Debit Credits 29490 Oct. 2 Debits Debit Oct. 3 Debits 4010 Debit Credits Credit Accounts 4010 Oct. 6 Debits 10910 Debit Credits 10910 Oct. 10 Debits 145 Debit Credits 145 oct. 27 Debits Debit Payable 630 630 Oct. 30 Debits Debit 3130 3130

Explanation / Answer

NOTE: Dr-DEBIT, Cr-CREDIT

Oct. 1 Stockholders invested $29,490 in exchange for common stock of the corporation.
Dr Cash 29,490-Increase assets
Cr Common Stock 29,490-Increase equity

Oct. 2 Hires an administrative assistant at an annual salary of $37,560.
No entry needed until the person starts working.

Oct. 3 Buys office furniture for $4,010, on account.
Dr Office Furniture 4,010-Increase assets
Cr Accounts Payable 4,010-Increase liabilities

Oct. 6 Sells a house and lot for M.E. Petty; commissions due from Petty, $10,910 (not paid by Petty at this time).
Dr Accounts Receivable 10,910-Increase assets
Cr Commissions Revenue 10,910-Increase equity

Oct. 10 Receives cash of $145 as commission for acting as rental agent renting an apartment.
Dr Cash 145-Increase assets
Cr Commissions Revenue 145-Increase equity

Oct. 27 Pays $630 on account for the office furniture purchased on October 3.
Dr Accounts Payable 630-decrease liabilities
Cr Cash 630-decrease assets

Oct. 30 Pays the administrative assistant $3,130 in salary for October.
Dr Salaries Expense 3,130-decrease equity
Cr Cash 3,130-decrease assets

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