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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: a. Opened a business bank account with a deposit of $30,000 from personal funds. b. Purchased office supplies on account, $1,800. c. Received cash from fees earned for managing rental property, $10,000 d. Paid rent on office and equipment for the month, $4,500. e. Paid creditors on account, $1,250. f. Billed customers for fees earned for managing rental property, $16,800 g. Paid automobile expenses (including rental charges) for the month, $750, and miscel- laneous expenses, $980. h. Paid officee salaries, $4,000 Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120. i j. Withdrew cash for personal use, $7,500 Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: Owner's Equity Assets = Liabilities+ Chad Wilson, Accounts Accounts Chad Wilson, Supplies Earned Expense - Expense - Expense Expense Expense Fees Rent Salaries Auto Misc. CashReceivable Supplies= Payable + Capital Drawing Briefly explain why the owner's investment and revenues increased owner's 2. equity, while withdrawals and expenses decreased owner's equity 3. Determine the net income for June. 4. How much did June's transactions increase or decrease Chad Wilson's capital?

On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June: a. Opened a business bank account with a deposit of $30,000 from personal funds. b. Purchased office supplies on account, $1,800. c. Received cash from fees earned for managing rental property, $10,000 d. Paid rent on office and equipment for the month, $4,500. e. Paid creditors on account, $1,250. f. Billed customers for fees earned for managing rental property, $16,800 g. Paid automobile expenses (including rental charges) for the month, $750, and miscel- laneous expenses, $980. h. Paid officee salaries, $4,000 Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120. i j. Withdrew cash for personal use, $7,500 Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: Owner's Equity Assets = Liabilities+ Chad Wilson, Accounts Accounts Chad Wilson, Supplies Earned Expense - Expense - Expense Expense Expense Fees Rent Salaries Auto Misc. CashReceivable Supplies= Payable + Capital Drawing Briefly explain why the owner's investment and revenues increased owner's 2. equity, while withdrawals and expenses decreased owner's equity 3. Determine the net income for June. 4. How much did June's transactions increase or decrease Chad Wilson's capital?

Excel Applications for Accounting Principles
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: a. Opened a business bank account with a deposit of $30,000 from personal funds. b. Purchased office supplies on account, $1,800. c. Received cash from fees earned for managing rental property, $10,000 d. Paid rent on office and equipment for the month, $4,500. e. Paid creditors on account, $1,250. f. Billed customers for fees earned for managing rental property, $16,800 g. Paid automobile expenses (including rental charges) for the month, $750, and miscel- laneous expenses, $980. h. Paid officee salaries, $4,000 Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120. i j. Withdrew cash for personal use, $7,500 Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:
Transcribed Image Text:On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June: a. Opened a business bank account with a deposit of $30,000 from personal funds. b. Purchased office supplies on account, $1,800. c. Received cash from fees earned for managing rental property, $10,000 d. Paid rent on office and equipment for the month, $4,500. e. Paid creditors on account, $1,250. f. Billed customers for fees earned for managing rental property, $16,800 g. Paid automobile expenses (including rental charges) for the month, $750, and miscel- laneous expenses, $980. h. Paid officee salaries, $4,000 Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120. i j. Withdrew cash for personal use, $7,500 Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:
Owner's Equity Assets = Liabilities+ Chad Wilson, Accounts Accounts Chad Wilson, Supplies Earned Expense - Expense - Expense Expense Expense Fees Rent Salaries Auto Misc. CashReceivable Supplies= Payable + Capital Drawing Briefly explain why the owner's investment and revenues increased owner's 2. equity, while withdrawals and expenses decreased owner's equity 3. Determine the net income for June. 4. How much did June's transactions increase or decrease Chad Wilson's capital?
Transcribed Image Text:Owner's Equity Assets = Liabilities+ Chad Wilson, Accounts Accounts Chad Wilson, Supplies Earned Expense - Expense - Expense Expense Expense Fees Rent Salaries Auto Misc. CashReceivable Supplies= Payable + Capital Drawing Briefly explain why the owner's investment and revenues increased owner's 2. equity, while withdrawals and expenses decreased owner's equity 3. Determine the net income for June. 4. How much did June's transactions increase or decrease Chad Wilson's capital?
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