Question

E2-4 Presented below is information related to Beijing Real Estate Agency Ltd.

Credit

Oct. 1

2 3 6

27 30

Lynn Robbins begins business as a real estate agent with a cash investment of ¥200,000 in exchange for ordinary shares.

Hires an administrative assistant.

Purchases office furniture for ¥19,000, on account.

Sells a house and lot for N. Fennig; bills N. Fennig ¥32,000 for realty services performed.

Pays ¥8,500 on the balance related to the transaction of October 3.

Pays the administrative assistant ¥25,000 in salary for October.

Instructions

Prepare the debit-credit analysis for each transaction as illustrated on pages 65–70. E2-5 Transaction data for Beijing Real Estate Agency Ltd. are presented in E2-4.

Instructions

Journalize the transactions. (You may omit explanations.) E2-6 Minsk Industries OAO had the following transactions.

1. Borrowed py 50,000 from the bank by signing a note. 2. Paid py 25,000 cash for a computer.

3. Purchased py 4,500 of supplies on account.

Answer 1

Debit Credit analysis for each transaction are as follows:

Date	Increase/Decrease	Debit	Credit
Oct 1,	Increase in assets	Cash
	Increase in Stockholders' equity		Common Stcok
2	No transaction
3	Increase in assets	Office furniture
	Increase in liabilities		Accounts payable
6	Increase in assets	Accounts receivable
	Increase in revenues		Service revenue
27	Decrease in liabilities	Accounts payable
	Decrease in assets		Cash
30	Increase in expenses	Salaries expenses
	Decrease in assets		Cash