Question

Presented below is information related to Pharoah Company. Oct. 1 2 3 Diane Lexington begins business as a real estate agent with a cash investment of $20,700 in exchange for common stock. Hires an administrative assistant. Purchases office furniture for $1,800, on account. Sells a house and lot for N. Fennig: bills N. Fennig $3,900 for realty services performed. Pays $1.500 on the balance related to the transaction of October 3. Pays the administrative assistant $2,850 in salary for October 6 27 30 Prepare the debit-credit analysis for each transaction.(If no entry is required, select "No Entry" for the account titles and enter for the amounts.)

Answer 1

Answer-:

In debit credit analysis, when assets or expenses increased it is debited and if liabilities, revenues or stockholder's equity is increased it is credited and vice versa.

Debit- Credit Analysis for these transactions are as follows-:

Oct. 1 Debits increase assets: Credits increase stockholders' equity: Debit Cash. Credit Common Stock N No transaction. 3 Debits increase assets: Credits increase liabilities: Debit Office Furniture. Credit Accounts Payable. 6 Debits increase assets: Credits increase revenues: Debit Accounts Receivable. Credit Service Revenue. 27 Debits decrease liabilities: Credits decrease assets: Debit Accounts Payable. Credit Cash. 30 Debits increase expenses: Credits decrease assets: Debit Salaries Expense. Credit Cash.

Note-:

Transaction dated october 2, there is no any monetory transaction takes place. that's why there is no any entry required.

Thankyou...............