menu
bartleby
search
close search
Hit Return to see all results
close solutoin list

Transactions; financial statements On August 1, 2018, Brooke Kline established Western Realty. Brooke completed the following transactions during the month of August: A. Opened a business bank account with a deposit of $35,000 in exchange for common stock. B. Purchased supplies on account, $2,750. C. Paid creditor on account, $1,800. D. Earned sales commissions, receiving cash, $52,800. E. Paid rent on office and equipment for the month, $4,500. F. Paid dividends, $3,000. G. Paid automobile expenses for month, $1,100, and miscellaneous expenses, $1,200. H. Paid office salaries, $5,250. I. Determined that the cost of supplies on hand was $1,750; therefore, the cost of supplies used was $1,000. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:

BuyFindarrow_forward

Financial & Managerial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337119207

Solutions

Chapter
Section
BuyFindarrow_forward

Financial & Managerial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337119207
Chapter 1, Problem 1.4APR
Textbook Problem
488 views

Transactions; financial statements

On August 1, 2018, Brooke Kline established Western Realty. Brooke completed the following transactions during the month of August:

  • A. Opened a business bank account with a deposit of $35,000 in exchange for common stock.
  • B. Purchased supplies on account, $2,750.
  • C. Paid creditor on account, $1,800.
  • D. Earned sales commissions, receiving cash, $52,800.
  • E. Paid rent on office and equipment for the month, $4,500.
  • F. Paid dividends, $3,000.
  • G. Paid automobile expenses for month, $1,100, and miscellaneous expenses, $1,200.
  • H. Paid office salaries, $5,250.
  • I. Determined that the cost of supplies on hand was $1,750; therefore, the cost of supplies used was $1,000.

Instructions

1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:

a)

To determine

Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by creating a relationship between the resources or assets of a company, and claims on the resources by the creditors and the owners. Accounting equation is expressed as shown below:

Assets = Liabilities + Shareholders Equity

Business transaction: Business transaction is a record of any economic activity, resulting in the change in the value of the assets, the liabilities, and the Shareholder’s equities. Business transaction is also referred to as financial transaction.

To Indicate: The effect of each given transaction of Company WR on the accounting equation.

Explanation of Solution

Indicate the effect of the given transactions of Company WR on the accounting equation.

b)

To determine

To Prepare: The financial statements for Company WR for the month ended August 31, 2018.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 1 Solutions

Financial & Managerial Accounting
Show all chapter solutions
add
Ch. 1 - Cost principle On June 25, Ritts Roofing extended...Ch. 1 - Accounting equation Be-The-One is a motivational...Ch. 1 - Transactions Interstate Delivery Service is owned...Ch. 1 - Income statement The revenues and expenses of...Ch. 1 - Retained earnings statement Using the income...Ch. 1 - Balance sheet Using the following data for...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Types of businesses The following is a list of...Ch. 1 - Professional ethics A fertilizer manufacturing...Ch. 1 - Business entity assumption Ozark Sports sells...Ch. 1 - Accounting equation The total assets and total...Ch. 1 - Accounting equation The total assets and total...Ch. 1 - Accounting equation Determine the missing amount...Ch. 1 - Accounting equation Inspirational Inc. is a...Ch. 1 - Asset, liability, and stockholders equity items...Ch. 1 - Effect of transactions on accounting equation What...Ch. 1 - Effect of transactions on accounting equation A. A...Ch. 1 - Effect of transactions on stockholders equity...Ch. 1 - Transactions The following selected transactions...Ch. 1 - Nature of transactions Teri West operates her own...Ch. 1 - Net income and dividends The income statement for...Ch. 1 - Net income and stockholders equity for four...Ch. 1 - Balance sheet items From the following list of...Ch. 1 - Income statement items From the following list of...Ch. 1 - Retained earnings statement Financial information...Ch. 1 - Income statement Imaging Services was organized on...Ch. 1 - Missing amounts from balance sheet and income...Ch. 1 - Balance sheets, net income Financial information...Ch. 1 - Financial statements Each of the following items...Ch. 1 - Statement of cash flows Indicate whether each of...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Financial statements We-Sell Realty, organized as...Ch. 1 - Transactions On September 1 of the current year,...Ch. 1 - Financial statements The amounts of the assets and...Ch. 1 - Financial statements Seth Feye established...Ch. 1 - Transactions; financial statements On August 1,...Ch. 1 - Transactions; financial statements DLite Dry...Ch. 1 - Missing amounts from financial statements The...Ch. 1 - Transactions Amy Austin established an insurance...Ch. 1 - Financial statements The amounts of the assets and...Ch. 1 - Financial statements Jose Loder established Bronco...Ch. 1 - Transactions; financial statements On April 1,...Ch. 1 - Transactions; financial statements Bevs Dry...Ch. 1 - Missing amount from financial statements The...Ch. 1 - Peyton Smith enjoys listening to all types of...Ch. 1 - Continuing Company AnalysisAmazon and Best Buy:...Ch. 1 - Home Depot: Ratio of liabilities to stockholders'...Ch. 1 - Lowes: Ratio of liabilities to stockholders equity...Ch. 1 - Papa Johns and Yum! Brands: Ratio of liabilities...Ch. 1 - Ethics in Action Marco Brolo is one of three...Ch. 1 - Communication There are two common causes of...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions add
What are the techniques used to forecast human resources supply?

Foundations of Business (MindTap Course List)

Describe marketing uses of branding

MKTG 12:STUDENT ED.-TEXT

What is free cash flow? If you were an investor, why might you be more interested in free cash flow than net in...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What does human capital include?

Pkg Acc Infor Systems MS VISIO CD

What kind of firm would use a job order cost system?

Survey of Accounting (Accounting I)