Presented below is information related toHanshew Real Estate Agency. Oct. 1 Pete

Question

Presented below is information related toHanshew Real Estate Agency.
Oct. 1    Pete Hanshew begins business as a realestate 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 forrealty services
              provided.
      27    Pays $700 onthe balance related to the transaction of October 3
      30    Pays theadministrative assistant $2,500 in salary for October.

Instructions:
Prepare the debit-credit analysis for each transaction.

Thank You, Please show all work.

Explanation / Answer

Oct. 1    Pete Hanshew begins business as areal estate agent with a cash investment of
             $ 15,000.
               Debit       Cash                                                                              $1,500                Credit      Owner'sEquity (Pete Hanshew CapitalInvestment)                                 $1,500                Receivedcash from Pete as his capital contribution.
        2   Hires an administrative assistant.                   Noentry required
        3   Purchases office furniture for $1,900, on account.                   Debit      OfficeFurniture                                                            $1,900                   Credit     AccountsPayable                                                                                  $1,900                Purchasedoffice furniture on account for $1,900
        6   Sells a house and lot for B. Kidman; bills B. Kidman $3,200 forrealty services
              provided.                Debit         B.Kidman                                                                   $3,500                Credit        ServiceRevenue                                                                                     $3,500                Billedfor agency services to B.Kidman for $3,500
      27    Pays $700 onthe balance related to the transaction of October 3                Debit         Accountspayable                                                         $700                Credit        Cash                                                                                                         $700                Paidcash on account against purchase of officefurniture
      30    Pays theadministrative assistant $2,500 in salary for October.
               Debit      Salariesexpense                                                            $2,500                Credit     Cash                  Paidsalary to assistant for the month of October      

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