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Debit Credit Analysis: Indicate, The Effect On The Accounting Equation

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Register to read the introduction… Oct. 1 Pete Hanshew begins business as a real estate agent with a cash investment of $15,000. 2 Hires an administrative assistant. 3 Purchases office furniture for $1,900, on account. 6 Sells a house and lot for B. Kidman; bills B. Kidman $3,200 for realty services provided. 27 Pays $700 on the balance related to the transaction of October 3. 30 Pays the administrative assistant $2,500 in salary for October. Instructions Complete the debit-credit analysis for each transaction. (If no transaction is required, select NA.) (a) Effect on Accounting Equation (b) Debit-Credit Analysis Oct. 1 The Asset account Cash is increased. Debits increase Assets : Debit Cash The Owner's Equity account Pete Hanshew, Capital is increased. Credits increase Owner's Equity ; Credit Pete Hanshew, Capital 2 The NA account NA is NA. Debits NA NA …show more content…
Date | | Account Titles and Explanation | Ref. | Debit | Credit | Aug. 1 | | Cash | | 5,034 | | | | Teresa Gonzalez, Capital | | | 5,034 | | | (Owner's investment of cash in business) | | | | 10 | | Cash | | 2,042 | | | | Service Revenue | | | 2,042 | | | (Received cash for services provided) | | | | 12 | | Office Equipment | | 4,763 | | | | Cash | | | 1,075 | | | Notes Payable | | | 3,688 | | | (Purchased office equipment for cash & notes payable) | | | | 25 | | Accounts Receivable | | 1,399 | | | | Service Revenue | | | 1,399 | | | (Billed clients for services provided) | | | | 31 | | Cash | | 893 | | | | Accounts Receivable | | | 893 | | | (Receipt of cash on account) | | | | Instructions (a) Post the transactions to T accounts. Cash | Aug. 1 | 5034 | Aug. 12 | 1,075 | 10 | 2042 | | | 31 | 893 | | | Bal. | 6,894 | | | Accounts Receivable | Aug. 25 | 1399 | Aug. 31 | 893 | Bal. | 506 | | | Office Equipment | Aug. 12 | 4763 | | | Notes Payable | | | Aug. 12 | 3688

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