close solutoin list

Transactions; financial statements On April 1, 2016, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April: a. Opened a business bank account with a deposit of $24, 000 from personal funds. b. Paid rent on office and equipment for the month, $3,600. c. Paid automobile expenses (including rental charge) for month, $1,350, and miscellaneous expenses, $600. d. Purchased office supplies on account, $1,200. e. Earned sales commissions, receiving cash, $19,800. f. Paid creditor on account, $750. g. Paid office salaries, $2,500. h. Withdrew cash for personal use, $3,500. i. Determined that the cost of supplies on hand was $300; therefore, the cost of supplies used was $900. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: 2. Prepare an income statement for April, a statement of owner’s equity for April, and a balance sheet as of April 30.

BuyFind

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285743615
BuyFind

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285743615

Solutions

Chapter
Section
Chapter 1, Problem 1.4BPR
Textbook Problem

Transactions; financial statements

On April 1, 2016, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April:

  1. a. Opened a business bank account with a deposit of $24, 000 from personal funds.
  2. b. Paid rent on office and equipment for the month, $3,600.
  3. c. Paid automobile expenses (including rental charge) for month, $1,350, and miscellaneous expenses, $600.
  4. d. Purchased office supplies on account, $1,200.
  5. e. Earned sales commissions, receiving cash, $19,800.
  6. f. Paid creditor on account, $750.
  7. g. Paid office salaries, $2,500.
  8. h. Withdrew cash for personal use, $3,500.
  9. i. Determined that the cost of supplies on hand was $300; therefore, the cost of supplies used was $900.

Instructions

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

Chapter 1, Problem 1.4BPR, Transactions; financial statements On April 1, 2016, Maria Adams established Custom Realty. Maria

  1. 2. Prepare an income statement for April, a statement of owner’s equity for April, and a balance sheet as of April 30.

Expert Solution

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Solution

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 1 Solutions

Accounting (Text Only)
Show all chapter solutions
Ch. 1 - Cost concept On February 22, Kountry Repair...Ch. 1 - Cost concept On March 31, Higgins Repair Service...Ch. 1 - Accounting equation Brock Hahn is the owner and...Ch. 1 - Accounting equation Fritz Evans is the owner and...Ch. 1 - Transactions Arrowhead Delivery Service is owned...Ch. 1 - Transactions Interstate Delivery Service is owned...Ch. 1 - Income statement The revenues and expenses of...Ch. 1 - Income statement The revenues and expenses of...Ch. 1 - Statement of owners equity Using the income...Ch. 1 - Statement of owners equity Using the income...Ch. 1 - Balance sheet Using the following data for Ousel...Ch. 1 - Balance sheet Using the following data for...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Ratio of liabilities to owners equity The...Ch. 1 - Ratio of liabilities to owners equity The...Ch. 1 - Types of businesses The following is a list of...Ch. 1 - Professional ethics A fertilizer manufacturing...Ch. 1 - Business entity concept Ozark Sports sells hunting...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 Annie Rasmussen is the owner...Ch. 1 - Asset, liability, and owners equity items Indicate...Ch. 1 - Effect of transactions on accounting equation...Ch. 1 - Effect of transactions on accounting equation a.A...Ch. 1 - Effect of transactions on owner's equity Indicate...Ch. 1 - Transactions The following selected transactions...Ch. 1 - Nature of transactions Teri West operates her own...Ch. 1 - Net income and owner's withdrawals The income...Ch. 1 - Net income and owner's equity for four businesses...Ch. 1 - Balance sheet items From the following list of...Ch. 1 - Income statement items Based on the data presented...Ch. 1 - Statement of owners equity Financial information...Ch. 1 - Income statement Dairy 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...Ch. 1 - Ratio of liabilities to stockholders equity The...Ch. 1 - Ratio of liabilities to stockholders equity Lowes...Ch. 1 - Transactions On April 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 July 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 amounts from financial statements The...Ch. 1 - Peyton Smith enjoys listening to all types of...Ch. 1 - Ethics in Action Colleen Fernandez, president of...Ch. 1 - Net income On January 1, 2015, Dr. Marcie Cousins...Ch. 1 - Transactions and financial statements Lisa Duncan,...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
What does the invisible hand of the marketplace do?

Essentials of Economics (MindTap Course List)

BREAK-EVEN ANALYSIS The Weaver Watch Company sells watches for 25, fixed costs are 140,000, and variable costs ...

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