This information relates to Sheffield Real Estate Agency. Oct. 1 Stockholders invest $33,860 in exchange for common stock of the corporation.
2 Hires an administrative assistant at an annual salary of $31,320.
3 Buys office furniture for $3,850, on account.
6 Sells a house and lot for E. C. Roads; commissions due from Roads, $10,620 (not paid by Roads at this time).
10 Receives cash of $220 as commission for acting as rental agent renting an apartment.
27 Pays $790 on account for the office furniture purchased on October 3.
30 Pays the administrative assistant $2,610 in salary for October.

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

cash 33,860 debit (+assests)

 common stock 33,860 credit (+equity)

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no entry required

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furniture 3,850 debit (+assets)

  account payable 3,850 credit (+liabilities)

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accounts receivables 10,620 debit (+assets)

     commissions revenues    10,620 credit (+revenue / +equity)

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cash        220 debit (+assets)

   commissions revenues    220 credit (+revenue / +equity)

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Accounts Payable 790 debit (- liaiblities)

            cash                 790 credit (- assets)

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Salaries expense 2,610 debit (+ expense / - equity)

           cash               2,610 credit (-assets)

Explanation:

We do the journal entries following the accounting rules

debit = credit

and we usethe accoutnign equation analysis

Assets   +   Expenses =  Liablities +  Equity  +   Revenues

DEBIT            CREDIT              DEBIT            CREDIT

+ + +              - - -                      - - -               + + +

The left side increase from debit and decrease from credit

while the element of the right side increase through credit and decrease by debit

Adjusting entries are made in your accounting journals at the end of an accounting period after a trial balance is prepared. After adjusted entries are made in your accounting journals, they are posted to the general ledger in the same way as any other accounting journal entry.