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PR 1-1A Transactions OBJ, 4 v Cash bal. at end of June: $21,020 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. Show Me How 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 office salaries, $4,000. i. Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120. 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: Assets = Liabilities + Owner's Equity Chad Wilson, Supplies Expense - Expense - Expense Accounts Accounts Chad Wilson, Fees Rent Salaries Auto Misc. Cash + Receivable + Supplies - Payable + Capital - Drawing + Earned - Expense - Expense 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?

PR 1-1A Transactions OBJ, 4 v Cash bal. at end of June: $21,020 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. Show Me How 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 office salaries, $4,000. i. Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120. 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: Assets = Liabilities + Owner's Equity Chad Wilson, Supplies Expense - Expense - Expense Accounts Accounts Chad Wilson, Fees Rent Salaries Auto Misc. Cash + Receivable + Supplies - Payable + Capital - Drawing + Earned - Expense - Expense 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?

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter1: Introduction To Accounting And Business
Section: Chapter Questions
Problem 1.4APR: Transactions; financial statements On August 1, 2018, Brooke Kline established Western Realty....
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PR 1-1A Transactions OBJ, 4 v Cash bal. at end of June: $21,020 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. Show Me How 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 office salaries, $4,000. i. Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120. 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: Assets = Liabilities + Owner's Equity Chad Wilson, Supplies Expense - Expense - Expense Accounts Accounts Chad Wilson, Fees Rent Salaries Auto Misc. Cash + Receivable + Supplies - Payable + Capital - Drawing + Earned - Expense - Expense 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:PR 1-1A Transactions OBJ, 4 v Cash bal. at end of June: $21,020 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. Show Me How 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 office salaries, $4,000. i. Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120. 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: Assets = Liabilities + Owner's Equity Chad Wilson, Supplies Expense - Expense - Expense Accounts Accounts Chad Wilson, Fees Rent Salaries Auto Misc. Cash + Receivable + Supplies - Payable + Capital - Drawing + Earned - Expense - Expense 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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