rites Tools Help LSateminnoun cacenusnting 10e Exercise 24 P

rites Tools Help LSateminnoun cacenusnting, 10e Exercise 2-4 Presented below is information related to Windsor Company. Oct. 1 Diane Lexington begins business as a real estate agent with a cash investment of $16,800 in exchange for common stock 2 Hires an administrative assistant. 3 Purchases office furniture for $2,500, on account. 6 Sells a house and lot for N. Fennig: bills N. Fennig $3,400 for realty services performed. 27 Pays $1,100 on the balance related to the transaction of October 3. 30 Pays the administrative assistant $2,650 in salary for October. Prepare the debit-credit analysis for each transaction. ( no entry is required, select No Entry\" for the account tities and enter o for f Debit-Credit Analysis Oct. 1 Debits v. Debit Credits Credit Oct. 2 Debits Vi. Debit Credits Credit

Solution

Date Account Amount Oct.1 Cash Debit Increases cash 16800 Common stock Credit Increases equity 16800 Oct.2 No entry Oct. 3 Furniture Debit Increases furniture 2500 Notes payable Credit Increases note payable liability 2500 Oct.6 Accounts receivable Debit Increases accounts receivable 3400 Service fee Credit Increases service revenue 3400 Oct.27 Notes payable Debit Decreases note payable 1100 Cash Credit Decreases cash 1100 Oct.30 Salaries exp Debit Increases expenses 2650 Cash Credit Decreases cash 2650