Answer:
The debit-credit analysis for each transaction is given below.
Oct. 1 Stockholders invested $30,000 in exchange for common stock of the corporation.
No effect (it is purchase of share already issued on stock exchange)
Oct. 2 Hires an administrative assistant at an annual salary of $42,000.
No effect (As hiring is not a transaction)
Oct. 3 Buys office furniture for $4,600, on account.
Debit Furniture Asset $ 4,600
Credit Account Payable $ 4,600
Oct. 6 Sells a house and lot for M.E. Petty; commissions due from Petty, $10,800 (not paid by Petty at this time).
Debit Commision Receivable $ 10,800
Credit Commission Income $ 10,800
Oct. 10 Receives cash of $140 as commission for acting as rental agent renting an apartment.
Debit Cash Asset $ 140
Credit Rental Commission Income $ 140
Oct. 27 Pays $700 on account for the office furniture purchased on October 3.
Debit Account Payabe $ 700
Credit Cash $ 700
Oct. 30 Pays the administrative assistant $3,500 in salary for October.
Debit Salary Expense $ 3,500
Credit Cash $ 3,500
