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Transaction data for Crane Real Estate Agency are presented as follows.

Oct. 1 James Crane begins business as a real estate agent with a cash investment of $22,050.
2 Hires an administrative assistant.
3 Purchases office furniture for $2,793, on account.
6 Sells a house and lot for C. Rouse; bills C. Rouse $5,292 for realty services performed.
27 Pays $1,617 on the balance related to the transaction of October 3.
30 Pays the administrative assistant $3,675 in salary for October.

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

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anthougo

The debit-credit analysis for each transaction for Crane Real Estate Agency is as follows:

Transaction Analysis:

                          Debit                                           Credit

Oct. 1 Cash $22,050                                            Common Equity $22,050

Oct. 2 No debit-credit analysis involved.

Oct. 3 Office furniture $2,793                              Accounts Payable $2,793

Oct. 6 Accounts Receivable (C. Rouse) $5,292  Service Revenue $5,292

Oct. 27 Accounts Payable $1,617                         Cash $1,617

Oct. 30 Salary Expense $3,675                           Cash $3,675

What is Transaction Analysis:

Transaction analysis is a financial accounting practice that enables the identification of the various accounts affected by each business transaction.

Transaction analysis also shows the impact of transactions on the accounting equation, which states that assets are equal to liabilities and equity.

Thus, each transaction is analyzed to show its impact on the accounting equation with a debit and a credit.

Learn more about transaction analysis at https://brainly.com/question/24401217

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