Transactions On June 1 of the current year, Pamela Schatz established a business to manage rental property. She completed the following transactions during June: Opened a business bank account with a deposit of $28,000 from personal funds. Purchased office supplies on account, $2,490. Received cash from fees earned for managing rental property, $6,980. Paid rent on office and equipment for the month, $3,050. Paid creditors on account, $1,130. Billed customers for fees earned for managing rental property, $5,650. Paid automobile expenses (including rental charges) for the month, $680, and miscellaneous expenses, $340. Paid office salaries, $2,150. Determined that the cost of supplies on hand was $1,470; therefore, the cost of supplies used was $1,020. Withdrew cash for personal use, $2,030. 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 + Owner's Equity Item Cash + Accounts Receivable + Supplies = Accounts Payable + Pamela Schatz, Capital - Pamela Schatz, Drawing
Transactions On June 1 of the current year, Pamela Schatz established a business to manage rental property. She completed the following transactions during June: Opened a business bank account with a deposit of $28,000 from personal funds. Purchased office supplies on account, $2,490. Received cash from fees earned for managing rental property, $6,980. Paid rent on office and equipment for the month, $3,050. Paid creditors on account, $1,130. Billed customers for fees earned for managing rental property, $5,650. Paid automobile expenses (including rental charges) for the month, $680, and miscellaneous expenses, $340. Paid office salaries, $2,150. Determined that the cost of supplies on hand was $1,470; therefore, the cost of supplies used was $1,020. Withdrew cash for personal use, $2,030. 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 + Owner's Equity Item Cash + Accounts Receivable + Supplies = Accounts Payable + Pamela Schatz, Capital - Pamela Schatz, Drawing
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...
Related questions
Topic Video
Question
100%
Transactions
On June 1 of the current year, Pamela Schatz established a business to manage rental property. She completed the following transactions during June:
- Opened a business bank account with a deposit of $28,000 from personal funds.
- Purchased office supplies on account, $2,490.
- Received cash from fees earned for managing rental property, $6,980.
- Paid rent on office and equipment for the month, $3,050.
- Paid creditors on account, $1,130.
- Billed customers for fees earned for managing rental property, $5,650.
- Paid automobile expenses (including rental charges) for the month, $680, and miscellaneous expenses, $340.
- Paid office salaries, $2,150.
- Determined that the cost of supplies on hand was $1,470; therefore, the cost of supplies used was $1,020.
- Withdrew cash for personal use, $2,030.
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 | + | Owner's Equity | |||||||
Item | Cash | + | Accounts Receivable |
+ | Supplies | = | Accounts Payable |
+ | Pamela Schatz, Capital |
- | Pamela Schatz, Drawing |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,