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PR1-1A On September 1 of the current year, Maria Edsll established a business to manage rental property. She completed the following transactions during September: a. Opened a business bank account with a deposit of $40,000 from personal funds. b. Purchased supplies (pens, file folders, and copy paper) on account, $2,200. c. Received cash from fees earned for managing rental property, $6,000. d. Paid rent on office and equipment for the month, $2,700. e. Paid creditors on account, $1,000. f. Billed customers for fees earned for managing rental property, $5,000. g. Paid automobile expenses (including rental charges) for month, $600, and miscellaneous expenses, $300. h. Paid office salaries, $1,900. i. Determined that the cost of…show more content…
Owner’s equity is the right of owners to the assets of the business. These rights are increased by owner’s investments and revenues and decreased by owner’s withdrawals and expenses. 3. $4,600 ($11,000 – $2,700 – $1,900 – $900 – $600 – $300) 4. September’s transactions increased Maria Edsall’s capital by $2,800 ($4,600 – $1,800), which is the excess of September’s net income of $4,600 over Maria Edsall’s withdrawals of $1,800. PR 1-2A 1. Prepare a income statement for the current year ended December 31 NEW WORLD TRAVEL AGENCY Income Statement For the Year Ended December 31, 2012 Fees earned $200,000 Expenses: Wages expense $90,000 Rent expense 45,000 Utilities expense 18,000 Supplies expense 3,000 Miscellaneous expense 4,000 Total expenses 160,000 Net income $ 40,000 2.Prepare a retained earnings statement for the current year ending Dec.

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