On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June: Opened a business bank account with a deposit of $30,000 from personal funds. Purchased office supplies on account, $1,800. Received cash from fees earned for managing rental property, $10,000. Paid rent on office and equipment for the month, $4,500. Paid creditors on account, $1,250. Billed customers for fees earned for managing rental property, $16,800. Paid automobile expenses (including rental charges) for the month, $750, and miscellaneous expenses, $980. Paid office salaries, $4,000. Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120. Withdrew cash for personal use, $7,500. Required: 1. Indicate the effect of each transaction and the balances after each transaction: For those boxes in which no entry is required, leave the box blank. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300) Assets = Liabilities
On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June: Opened a business bank account with a deposit of $30,000 from personal funds. Purchased office supplies on account, $1,800. Received cash from fees earned for managing rental property, $10,000. Paid rent on office and equipment for the month, $4,500. Paid creditors on account, $1,250. Billed customers for fees earned for managing rental property, $16,800. Paid automobile expenses (including rental charges) for the month, $750, and miscellaneous expenses, $980. Paid office salaries, $4,000. Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120. Withdrew cash for personal use, $7,500. Required: 1. Indicate the effect of each transaction and the balances after each transaction: For those boxes in which no entry is required, leave the box blank. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300) Assets = Liabilities
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter1: Business Transactions (ptrans)
Section: Chapter Questions
Problem 3R: On June 1 of the current year, Wilson Wood opened Woodys Web Services. This sole proprietorship had...
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On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June:
- Opened a business bank account with a deposit of $30,000 from personal funds.
- Purchased office supplies on account, $1,800.
- Received cash from fees earned for managing rental property, $10,000.
- Paid rent on office and equipment for the month, $4,500.
- Paid creditors on account, $1,250.
- Billed customers for fees earned for managing rental property, $16,800.
- Paid automobile expenses (including rental charges) for the month, $750, and miscellaneous expenses, $980.
- Paid office salaries, $4,000.
- Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120.
- Withdrew cash for personal use, $7,500.
Required:
1. Indicate the effect of each transaction and the balances after each transaction:
For those boxes in which no entry is required, leave the box blank.
For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300)
Assets | = | Liabilities |
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