Homework Help is Here – Start Your Trial Now!
Business
Accounting
Transactions; Financial Statements On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April: Opened a business bank account with a deposit of $26,000 in exchange for common stock. Purchased supplies on account, $2,620. Paid creditor on account, $1,660. Earned sales commissions, receiving cash, $26,750. Paid rent on office and equipment for the month, $5,240. Paid dividends, $8,000. Paid automobile expenses for month, $2,510, and miscellaneous expenses, $1,200. Paid office salaries, $3,160. Determined that the cost of supplies on hand was $880; therefore, the cost of supplies used was $1,740. 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. 2. Prepare an income statement for April.

Transactions; Financial Statements On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April: Opened a business bank account with a deposit of $26,000 in exchange for common stock. Purchased supplies on account, $2,620. Paid creditor on account, $1,660. Earned sales commissions, receiving cash, $26,750. Paid rent on office and equipment for the month, $5,240. Paid dividends, $8,000. Paid automobile expenses for month, $2,510, and miscellaneous expenses, $1,200. Paid office salaries, $3,160. Determined that the cost of supplies on hand was $880; therefore, the cost of supplies used was $1,740. 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. 2. Prepare an income statement for April.

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter4: Accounting For Retail Operations
Section: Chapter Questions
Problem 4.4.1P: Multiple-step income statement and report form of balance sheet The following selected accounts and...
See similar textbooks
icon
Related questions
Topic Video
Question

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 $26,000 in exchange for common stock.
  2. Purchased supplies on account, $2,620.
  3. Paid creditor on account, $1,660.
  4. Earned sales commissions, receiving cash, $26,750.
  5. Paid rent on office and equipment for the month, $5,240.
  6. Paid dividends, $8,000.
  7. Paid automobile expenses for month, $2,510, and miscellaneous expenses, $1,200.
  8. Paid office salaries, $3,160.
  9. Determined that the cost of supplies on hand was $880; therefore, the cost of supplies used was $1,740.

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.

2.  Prepare an income statement for April.

2. Prepare an income statement for April. Custom Realty Income Statement For the Month Ended April 30, 20Y8 Sales commissions Expenses: Supplies expense Total expenses 69 001
Transcribed Image Text:2. Prepare an income statement for April. Custom Realty Income Statement For the Month Ended April 30, 20Y8 Sales commissions Expenses: Supplies expense Total expenses 69 001
a. b. Bal. C. Bal. d. Bal. e. Bal. f. Bal. g. Bal. h. Bal. i. Bal. Cash 26,000 26,000 Assets + Supplies = Liabilities + Accounts Payable + Common Stock 26,000 ✔ 26,000 ✓ - Dividends + Sales Commissions Stockholders' Equity Salaries Expense Rent Expense Auto Expense -2,510 X Supplies Miscellaneous Expense Expense
Transcribed Image Text:a. b. Bal. C. Bal. d. Bal. e. Bal. f. Bal. g. Bal. h. Bal. i. Bal. Cash 26,000 26,000 Assets + Supplies = Liabilities + Accounts Payable + Common Stock 26,000 ✔ 26,000 ✓ - Dividends + Sales Commissions Stockholders' Equity Salaries Expense Rent Expense Auto Expense -2,510 X Supplies Miscellaneous Expense Expense
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Equation
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Century 21 Accounting General Journal
Century 21 Accounting General Journal
Accounting
ISBN:
9781337680059
Author:
Gilbertson
Publisher:
Cengage
Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Quickbooks Online Accounting
Quickbooks Online Accounting
Accounting
ISBN:
9780357391693
Author:
Owen
Publisher:
Cengage
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
SEE MORE TEXTBOOKS