Question
View Policies Current Attempt in Progress Flounder Corp. has the following transactions during August of the current year. Aug. 1 Issues shares of common stock
View Policies
Current Attempt in Progress
Flounder Corp. has the following transactions during August of the current year.
| Aug. 1 | Issues shares of common stock to investors in exchange for $14,800. | |
| Aug. 4 | Pays insurance in advance for 3 months, $1,700. | |
| Aug. 16 | Receives $900 from clients for services rendered. | |
| Aug. 27 | Pays the secretary $710 salary. |
Indicate the basic analysis and the debitcredit analysis.
| Basic Analysis | Debit-Credit Analysis | |||
| Aug. 1 | The asset Prepaid InsuranceCashSalaries and Wages ExpenseCommon StockService Revenue is IncreasedDecreased; | Debits Decrease Stockholders EquityIncrease Stockholders EquityIncrease AssetsIncrease RevenuesDecrease ExpensesIncrease ExpensesDecrease AssetsDecrease Revenues | ||
| the stockholders equity account Prepaid InsuranceCommon StockSalaries and Wages ExpenseService RevenueCash is IncreasedDecreased. | Debit Salaries and Wages ExpensePrepaid InsuranceService RevenueCashCommon Stock $ | |||
| Credits Increase RevenuesDecrease RevenuesIncrease Stockholders EquityDecrease ExpensesIncrease AssetsDecrease Stockholders EquityIncrease ExpensesDecrease Assets | ||||
| Credit Salaries and Wages ExpenseCommon StockService RevenueCashPrepaid Insurance $ | ||||
| Aug. 4 | The asset CashService RevenueCommon StockSalaries and Wages ExpensePrepaid Insurance is IncreasedDecreased; | Debits Increase Stockholders EquityIncrease ExpensesDecrease Stockholders EquityDecrease ExpensesIncrease RevenuesIncrease AssetsDecrease AssetsDecrease Revenues | ||
| the asset Service RevenueCashSalaries and Wages ExpensePrepaid InsuranceCommon Stock is IncreasedDecreased. | Debit CashService RevenueCommon StockPrepaid InsuranceSalaries and Wages Expense $ | |||
| Credits Increase RevenuesDecrease AssetsDecrease Stockholders EquityIncrease AssetsDecrease RevenuesDecrease ExpensesIncrease Stockholders EquityIncrease Expenses | ||||
| Credit Service RevenuePrepaid InsuranceSalaries and Wages ExpenseCommon StockCash $ | ||||
| Aug. 16 | The asset CashService RevenuePrepaid InsuranceCommon StockSalaries and Wages Expense is IncreasedDecreased; | Debits Increase Stockholders EquityDecrease ExpensesDecrease Stockholders EquityIncrease ExpensesDecrease AssetsIncrease AssetsDecrease RevenuesIncrease Revenues | ||
| the revenue CashService RevenueCommon StockPrepaid InsuranceSalaries and Wages Expense is IncreasedDecreased. | Debit Prepaid InsuranceSalaries and Wages ExpenseService RevenueCashCommon Stock $ | |||
| Credits Decrease ExpensesIncrease ExpensesDecrease Stockholders EquityDecrease AssetsIncrease Stockholders EquityIncrease AssetsIncrease RevenuesDecrease Revenues | ||||
| Credit Prepaid InsuranceCommon StockService RevenueCashSalaries and Wages Expense $ | ||||
| Aug. 27 | The expense Common StockCashPrepaid InsuranceSalaries and Wages ExpenseService Revenue is IncreasedDecreased; | Debits Increase AssetsIncrease Stockholders EquityIncrease RevenuesDecrease RevenuesDecrease ExpensesDecrease AssetsIncrease ExpensesDecrease Stockholders Equity | ||
| the asset Service RevenueCashSalaries and Wages ExpensePrepaid InsuranceCommon Stock is IncreasedDecreased. | Debit CashService RevenueCommon StockPrepaid InsuranceSalaries and Wages Expense $ | |||
| Credits Increase RevenuesDecrease ExpensesDecrease Stockholders EquityIncrease ExpensesIncrease AssetsIncrease Stockholders EquityDecrease AssetsDecrease Revenues | ||||
| Credit Prepaid InsuranceService RevenueSalaries and Wages ExpenseCashCommon Stock $ |
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Managerial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
7th edition
978-1118334331, 1118334337, 978-1119036449, 1119036445, 978-1119036432
