April 1, Realty. completed the ansac shown on the next page during the month of April: Chapter 2 Accounting Equation, Financial Statements, and Financial Analysis 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 the month, $1,350, and miscellane expenses, $600. d. Purchased office supplies on account, $1,200. e. Earned sales commissions, receiving cash, $19,800.

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 1.4BPR
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PR 2-4B Transactions; financial statements
ов. 2, з
v 2. Net income: On April 1, 2014, Maria Adams established Custom Realty. Maria completed the transactions
$10,850
shown on the next page during the month of April:
Chapter 2 Accounting Equation, Financial Statements, and Financial Analysis
49
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 the 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:
= Liabilities +
Owner's Equity
Assets
Maria
Maria
Accounts
Adams,
Adams,
Sales
Rent
Salaries
Auto
Supplies
Expense
Misc.
i - Supplies
= Payable + Capital - Drawing + Commissions - Expense
Expense
- Expense
Expense
2. Prepare an income statement for April, a statement of owner's equity for April, and a balance
sheet as of April 30.
Transcribed Image Text:PR 2-4B Transactions; financial statements ов. 2, з v 2. Net income: On April 1, 2014, Maria Adams established Custom Realty. Maria completed the transactions $10,850 shown on the next page during the month of April: Chapter 2 Accounting Equation, Financial Statements, and Financial Analysis 49 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 the 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: = Liabilities + Owner's Equity Assets Maria Maria Accounts Adams, Adams, Sales Rent Salaries Auto Supplies Expense Misc. i - Supplies = Payable + Capital - Drawing + Commissions - Expense Expense - Expense Expense 2. Prepare an income statement for April, a statement of owner's equity for April, and a balance sheet as of April 30.
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Transactions; financial statements

On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April:

  1. Opened a business bank account with a deposit of $24,000 in exchange for common stock.
  2. Paid rent on office and equipment for the month, $3,600.
  3. Paid automobile expenses for month, $1,350, and miscellaneous expenses, $600.
  4. Purchased supplies on account, $1,200.
  5. Earned sales commissions, receiving cash, $19,800.
  6. Paid creditor on account, $750.
  7. Paid office salaries, $2,500.
  8. Paid dividends, $3,500.
  9. Determined that the cost of supplies on hand was $300; therefore, the cost of supplies used was $900.

Required:

Question Content Area

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 using a minus sign.

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