Assets Liabilities Stockholders' Equity Salaries Supplies - Dividends Earned- Espense- Epense - Expense- Expense - Expense Accounts Accounts Common Fees Rent Auto Mc Cash Receivable Supplies Payable Stock
Transactions
On April 1 of the current year, .Morgan Jones established a business to
manage rental property. She completed the following transactions
during April:
a. pened a business bank account with a deposit of $60,000 m
exchange for common stock.
b. Purchased office supplies on account $ 1.800.
c. Received cash from fees earned tor managing rental property,
$22,300
d. Paid rent on office and equipment for the month, $7,000.
e. Paid creditors on account $1, 100
f. Billed customers for fees earned for managing rental property,
$3,600.
g. Paid automobile expenses for month $750, and miscellaneous
expenses, $ 1,000.
h. Paid office salaries. $4,000
I. Determined that the cost of supplies on hand was $250:
therefore, the cost of supplies used was $1.550
J. Paid dividends, $5,000.
Instructions
1. Indicate the effect of each transaction and the balances after
each transaction, using the following tabular headings: (attached)
2. Briefly explain why issuing common stock and revenues
increased
decreased stockholders' equity.
3. Determine the net income for April
4. How much did April's transactions increase or decrease
stockholders' equity?
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