Essay on Credit Debit Analysis

3583 Words Nov 20th, 2011 15 Pages
T.J. Carlin has the following transactions during August of the current year. Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis. Aug. 1 | | Opens an office as a financial advisor, investing $8,000 in cash. | 4 | | Pays insurance in advance for 6 months, $1,800 cash. | 16 | | Receives $800 from clients for service provided. | 27 | | Pays secretary $1,000 salary. | | | (a) Effect on Accounting Equation | (b) Debit-Credit Analysis | Aug. 1 | | The Asset account Cash is increased. | Debits increase Assets : | | | | Debit Cash | | | | | | | The …show more content…
Journalize the transactions based on the data below. Aug. 1 | | Opens an office as a financial advisor, investing $8,000 in cash. | 4 | | Pays insurance in advance for 6 months, $1,800 cash. | 16 | | Receives $800 from clients for service provided. | 27 | | Pays secretary $1,000 salary. | Date | Account/Description | Debit | Credit | Aug 1 | Cash | 8,000 | | | T.J. Carlin, Capital | | 8000 | 4 | Prepaid Insurance | 1800 | | | Cash | | 1800 | 16 | Cash | 800 | | | Service Revenue | | 800 | 27 | Salaries Expense | 1000 | | | Cash | | 1000 | Click here if you would like to Show Work for this question | | | |

The following accounts are taken from the ledger of Boardin' Company at December 31, 2010. 200 | Notes Payable | $20,000 | | 100 | Cash | $6,000 | 300 | Hawk, Capital | 25,000 | | 120 | Supplies | 5,000 | 150 | Equipment | 80,000 | | 522 | Supplies Expense | 2,000 | 310 | Hawk, Drawing | 8,000 | | 220 | Salaries Payable | 3,000 | 726 | Salaries Expense | 38,000 | |

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