Amy Austin established an insurance agency on March 1 of the current year and completed the following transactions during March: a. Opened a business bank account with a deposit of $50,000 from personal funds b. Purchased supplies on account, $4,000. c. Paid creditors on account, $2,300. d. Received cash from fees earned on insurance commissions, $13,800 e. Paid rent on office and equipment for the month, $5,000. f. Paid automobile expenses for the month, $1,150, and miscellaneous expenses, $300. g. Paid office salaries, $2,500. h. Determined that the cost of supplies on hand was $2,700; therefore, the cost of supplies used was $1,300 i. Billed insurance companies for sales commissions earned, $12,500. j. Withdrew cash for personal use, $3,900. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: Owner's Equity Assets Liabilities Accounts Accounts Amy Austin, Amy Austin, Capital DrawingEarned Expense Expense Fees Rent Salaries Supplies Auto Misc. CashReceiableSupplies = Payable Expense Expense Expense 2 equity, while withdrawals and expenses decreased owner's equity. Briefly explain why the owner's investment and revenues increased owner's 3. Determine the net income for March 4. How much did March's transactions increase or decrease Amy Austin's capital?
Amy Austin established an insurance agency on March 1 of the current year and completed the following transactions during March: a. Opened a business bank account with a deposit of $50,000 from personal funds b. Purchased supplies on account, $4,000. c. Paid creditors on account, $2,300. d. Received cash from fees earned on insurance commissions, $13,800 e. Paid rent on office and equipment for the month, $5,000. f. Paid automobile expenses for the month, $1,150, and miscellaneous expenses, $300. g. Paid office salaries, $2,500. h. Determined that the cost of supplies on hand was $2,700; therefore, the cost of supplies used was $1,300 i. Billed insurance companies for sales commissions earned, $12,500. j. Withdrew cash for personal use, $3,900. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: Owner's Equity Assets Liabilities Accounts Accounts Amy Austin, Amy Austin, Capital DrawingEarned Expense Expense Fees Rent Salaries Supplies Auto Misc. CashReceiableSupplies = Payable Expense Expense Expense 2 equity, while withdrawals and expenses decreased owner's equity. Briefly explain why the owner's investment and revenues increased owner's 3. Determine the net income for March 4. How much did March's transactions increase or decrease Amy Austin's capital?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Amy Austin established an insurance agency on March 1 of the current year and completed
the following transactions during March:
a. Opened a business bank account with a deposit of $50,000 from personal funds
b. Purchased supplies on account, $4,000.
c. Paid creditors on account, $2,300.
d. Received cash from fees earned on insurance commissions, $13,800
e. Paid rent on office and equipment for the month, $5,000.
f. Paid automobile expenses for the month, $1,150, and miscellaneous expenses, $300.
g. Paid office salaries, $2,500.
h. Determined that the cost of supplies on hand was $2,700; therefore, the cost of supplies
used was $1,300
i. Billed insurance companies for sales commissions earned, $12,500.
j. Withdrew cash for personal use, $3,900.
Instructions
1. Indicate the effect of each transaction and the balances after each transaction, using
the following tabular headings:
Transcribed Image Text:Instructions
1. Indicate the effect of each transaction and the balances after each transaction, using
the following tabular headings:
Owner's Equity
Assets
Liabilities
Accounts
Accounts
Amy Austin, Amy Austin,
Capital DrawingEarned Expense Expense
Fees
Rent
Salaries
Supplies
Auto
Misc.
CashReceiableSupplies = Payable
Expense Expense Expense
2
equity, while withdrawals and expenses decreased owner's equity.
Briefly explain why the owner's investment and revenues increased owner's
3. Determine the net income for March
4. How much did March's transactions increase or decrease Amy Austin's capital?
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