Transactions; Financial StatementsOn July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July:Opened a business bank account with a deposit of $25,000 from personal funds.Purchased office supplies on account, $2,540.Paid creditor on account, $1,610.Earned sales commissions, receiving cash, $25,920.Paid rent on office and equipment for the month, $5,080.Withdrew cash for personal use, $8,000.Paid automobile expenses (including rental charge) for the month, $2,440, and miscellaneous expenses, $1,170.Paid office salaries, $3,060.Determined that the cost of supplies on hand was $860; therefore, the cost of supplies used was $1,680.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. If required, enter negative values as negative numbers. Assets=Liabilities + Owner's Equity  Cash+Supplies=AccountsPayable +Pat Glenn,Capital -Pat Glenn,Drawing+SalesCommissions -Rent Expense -Office SalariesExpense -AutoExpense-SuppliesExpense -MiscellaneousExpense a.                      b.                      Bal.                      c.                      Bal.                      d.                      Bal.                      e.                      Bal.                      f.                      Bal.                      g.                      Bal.                      h.                      Bal.                      i.                      Bal.                      2.  Prepare an income statement for July.Half Moon RealtyIncome StatementFor the Month Ended July 31, 2019Sales commissions  $Expenses:  Rent expense $ Office salaries expense   Automobile expense   Supplies expense   Miscellaneous expense   Total expenses  Net income  $Prepare a statement of owner's equity for July. If an amount is zero, enter "0".Half Moon RealtyStatement of Owner's EquityFor the Month Ended July 31, 2019Pat Glenn, capital,July 1, 2019  $Investment on July 1, 2019 $ Net income for July   Withdrawals   Increase in owners equity   Pat Glenn, capital, July 31, 2019  $Prepare a balance sheet as of July 31.Half Moon RealtyBalance SheetJuly 31, 2019AssetsCash $Supplies  Total assets$LiabilitiesAccounts payable $Owner's EquityPat Glenn, capital  Total liabilities and owner's equity$

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Asked Jan 12, 2020
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Transactions; Financial Statements

On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July:

  1. Opened a business bank account with a deposit of $25,000 from personal funds.
  2. Purchased office supplies on account, $2,540.
  3. Paid creditor on account, $1,610.
  4. Earned sales commissions, receiving cash, $25,920.
  5. Paid rent on office and equipment for the month, $5,080.
  6. Withdrew cash for personal use, $8,000.
  7. Paid automobile expenses (including rental charge) for the month, $2,440, and miscellaneous expenses, $1,170.
  8. Paid office salaries, $3,060.
  9. Determined that the cost of supplies on hand was $860; therefore, the cost of supplies used was $1,680.

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. If required, enter negative values as negative numbers.

  Assets = Liabilities + Owner's Equity
    Cash + Supplies = Accounts
Payable
+ Pat Glenn,
Capital
- Pat Glenn,
Drawing
+ Sales
Commissions
- Rent Expense - Office Salaries
Expense
- Auto
Expense
- Supplies
Expense
- Miscellaneous
Expense
a.                                            
b.                                            
Bal.                                            
c.                                            
Bal.                                            
d.                                            
Bal.                                            
e.                                            
Bal.                                            
f.                                            
Bal.                                            
g.                                            
Bal.                                            
h.                                            
Bal.                                            
i.                                            
Bal.                                            

2.  Prepare an income statement for July.

Half Moon Realty
Income Statement
For the Month Ended July 31, 2019
Sales commissions    $
Expenses:    
Rent expense  $  
Office salaries expense     
Automobile expense     
Supplies expense     
Miscellaneous expense     
Total expenses    
Net income    $

Prepare a statement of owner's equity for July. If an amount is zero, enter "0".

Half Moon Realty
Statement of Owner's Equity
For the Month Ended July 31, 2019
Pat Glenn, capital,July 1, 2019    $
Investment on July 1, 2019  $  
Net income for July     
Withdrawals     
Increase in owners equity     
Pat Glenn, capital, July 31, 2019    $

Prepare a balance sheet as of July 31.

Half Moon Realty
Balance Sheet
July 31, 2019
Assets
Cash  $
Supplies   
Total assets $
Liabilities
Accounts payable  $
Owner's Equity
Pat Glenn, capital   
Total liabilities and owner's equity $
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