Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: = Liabilities Assets Owner's Equity Maria Maria Misc Expense Adams, Accounts Adams, Sales Rent Salaries Auto Supplies Expense Payable Capital - Drawing + Commissions Expense Expense CashSupplies Expense 2. Prepare an income statement for April, a statement of owner's equity for April, and a balance sheet as of April 30.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On April 1, 2019, 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 the month, $1,350, and miscellaneous expenses, $600.
d. Purchased office supplies on account, $1,200.
e. Earned sales commissions (revenue) from selling real estate, 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
Assets
Owner's Equity
Maria
Maria
Misc
Expense
Adams,
Accounts
Adams,
Sales
Rent
Salaries
Auto
Supplies
Expense
Payable Capital - Drawing + Commissions Expense Expense
CashSupplies
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:Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: = Liabilities Assets Owner's Equity Maria Maria Misc Expense Adams, Accounts Adams, Sales Rent Salaries Auto Supplies Expense Payable Capital - Drawing + Commissions Expense Expense CashSupplies 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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