This information relates to Pickert Real Estate Agency.

Oct. 1 Stockholders invested $30,000 in exchange for common stock of the corporation.
Oct. 2 Hires an administrative assistant at an annual salary of $42,000.
Oct. 3 Buys office furniture for $4,600, on account.
Oct. 6 Sells a house and lot for M.E. Petty; commissions due from Petty, $10,800 (not paid by Petty at this time).
Oct. 10 Receives cash of $140 as commission for acting as rental agent renting an apartment.
Oct. 27 Pays $700 on account for the office furniture purchased on October 3.
Oct. 30 Pays the administrative assistant $3,500 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.)

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TomShelby TomShelby · Answer 1 · 2020-02-14T06:30:47+01:00

Answer:

Cash 30,000 debit (+A)

Comon Stock 30,000 Credit (+SE)

furtniture 4,600 debit (+A)

accounts payable 4,600 (+L)

accounts receivables 10,800 debit (+A)

commisions revenue 10,800 (+R)

cash 140 debit (+A)

commisions revenue 140 (+R)

Accounts payable 700 debit (-L)

cash 700 credit (-A)

salaries expense 3,500 debit (+E)

cash 3,500 credit (+A)

Explanation:

Assets (A) and Expenses (E) will icnrease form debit and decrease from credit

Liabilities (L) Revenues (R) and Stochholder equity (SE) will icnrease from credit and decrease from debit

The journal entries must be done considering the rule debit = credit all the times