Question

The following information is related to Lexington Real Estate Agency.

Oct.	1		Diane Lexington begins business as a real estate agent with a cash investment of $20,000 in exchange for common stock.
	2		Hires an administrative assistant.
	3		Purchases office furniture for $2,300, on account.
	6		Sells a house and lot for N. Fennig; bills N. Fennig $3,600 for realty services performed.
	27		Pays $850 on the balance related to the transaction of October 3.
	30		Pays the administrative assistant $2,500 in salary for October.

Prepare the debit-credit analysis for each transaction.(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Debit-Credit Analysis
Oct.	1		Debits	select an effect on a basic account type

:		Debit	enter an account title for the journal entry on October 1		$enter a dollar amount
			Credits	select an effect on a basic account type

:		Credit	enter an account title for the journal entry on October 1		$enter a dollar amount
Oct.	2		Debits	select an effect on a basic account type

:		Debit	enter an account title for the journal entry on October 2		$enter a dollar amount
			Credits	select an effect on a basic account type

:		Credit	enter an account title for the journal entry on October 2		$enter a dollar amount
Oct.	3		Debits	select an effect on a basic account type

:		Debit	enter an account title for the journal entry on October 3		$enter a dollar amount
			Credits	select an effect on a basic account type

:		Credit	enter an account title for the journal entry on October 3		$enter a dollar amount
Oct.	6		Debits	select an effect on a basic account type

:		Debit	enter an account title for the journal entry on October 6		$enter a dollar amount
			Credits	select an effect on a basic account type

:		Credit	enter an account title for the journal entry on October 6		$enter a dollar amount
Oct.	27		Debits	select an effect on a basic account type

:		Debit	enter an account title for the journal entry on October 27		$enter a dollar amount
			Credits	select an effect on a basic account type

:		Credit	enter an account title for the journal entry on October 27		$enter a dollar amount
Oct.	30		Debits	select an effect on a basic account type

:		Debit	enter an account title for the journal entry on October 30		$enter a dollar amount
			Credits	select an effect on a basic account type

:		Credit	enter an account title for the journal entry on October 30

Answer 1

Affect on accounting equation			Debit credit anaylsis		Affect on amounts
1. Oct 1.	Debits Credits	Increase Assets Increases stock holder equity	Debit Credit	Cash Common stock	$20,000 $20,000
2.Oct 2nd	Debit Credit	No entry No entry	Debit Credit	No entry No entry	0 0
3.Oct 3rd.	Debit Credit	Increase Assets Increase liability	Debit Credit	Office furniture Accounts payable	$2,300 $2,300
4.Oct 6th	Debit Credit	Increase Asset Increase Revenue	Debit Credit	Account receivables Service revenue	$3,600 $3,600
5. Oct 27	Debit Credit	Decreases liability Decreases Asset	Debit Credit	Accounts payable Cash	$850 $850
6. Oct 30	debit Credit	Increase expense Decrease assets	Debit Credits	Salaries expense Cash	$2500 $2500