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On June 1 of the current year, Chris Bates established a business to manage rental property. The following transactions were completed during June: Opened a business bank account with a deposit of $29,000 in exchange for common stock. Purchased office supplies on account, $3,590. Received cash from fees earned for managing rental property, $9,700. Paid rent on office and equipment for the month, $4,400. Paid creditors on account, $1,630. Billed customers for fees earned for managing rental property, $8,150. Paid automobile expenses for month, $980, and miscellaneous expenses, $490. Paid office salaries, $3,100. Determined that the cost of supplies on hand was $2,120; therefore, the cost of supplies used was $1,470. Paid dividends, $2,930. Required: 1.  Indicate the effect of each transaction and the balances after each transaction: If an amount box does not require an entry, leave it blank. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300)

On June 1 of the current year, Chris Bates established a business to manage rental property. The following transactions were completed during June: Opened a business bank account with a deposit of $29,000 in exchange for common stock. Purchased office supplies on account, $3,590. Received cash from fees earned for managing rental property, $9,700. Paid rent on office and equipment for the month, $4,400. Paid creditors on account, $1,630. Billed customers for fees earned for managing rental property, $8,150. Paid automobile expenses for month, $980, and miscellaneous expenses, $490. Paid office salaries, $3,100. Determined that the cost of supplies on hand was $2,120; therefore, the cost of supplies used was $1,470. Paid dividends, $2,930. Required: 1.  Indicate the effect of each transaction and the balances after each transaction: If an amount box does not require an entry, leave it blank. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300)

FINANCIAL ACCOUNTING
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 June 1 of the current year, Chris Bates established a business to manage rental property. The following transactions were completed during June:

  1. Opened a business bank account with a deposit of $29,000 in exchange for common stock.
  2. Purchased office supplies on account, $3,590.
  3. Received cash from fees earned for managing rental property, $9,700.
  4. Paid rent on office and equipment for the month, $4,400.
  5. Paid creditors on account, $1,630.
  6. Billed customers for fees earned for managing rental property, $8,150.
  7. Paid automobile expenses for month, $980, and miscellaneous expenses, $490.
  8. Paid office salaries, $3,100.
  9. Determined that the cost of supplies on hand was $2,120; therefore, the cost of supplies used was $1,470.
  10. Paid dividends, $2,930.

Required:

1.  Indicate the effect of each transaction and the balances after each transaction:
If an amount box does not require an entry, leave it blank.
For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300)

 

Item a. b. Bal. C. Bal. d. Bal. e. Bal. f. Bal. g. Bal. h. Bal. i. Cash Assets + Accounts Receivable + Supplies 70000 ☐☐☐☐▬▬▬▬▬▬ || = Liabilities + Accounts Payable + Common Stock - Dividends + Fees Earned Stockholders' Equity Salaries Expense Rent Expense ▬▬▬▬▬▬▬▬▬▬▬▬▬▬ ▬▬▬▬▬▬▬▬▬▬▬▬ I Supplies Expense w Auto Expense ▬▬▬▬▬▬▬▬▬ - Miscellaneous Expense m 1. B e B. f. Ba h. g. Ba Ba
Transcribed Image Text:Item a. b. Bal. C. Bal. d. Bal. e. Bal. f. Bal. g. Bal. h. Bal. i. Cash Assets + Accounts Receivable + Supplies 70000 ☐☐☐☐▬▬▬▬▬▬ || = Liabilities + Accounts Payable + Common Stock - Dividends + Fees Earned Stockholders' Equity Salaries Expense Rent Expense ▬▬▬▬▬▬▬▬▬▬▬▬▬▬ ▬▬▬▬▬▬▬▬▬▬▬▬ I Supplies Expense w Auto Expense ▬▬▬▬▬▬▬▬▬ - Miscellaneous Expense m 1. B e B. f. Ba h. g. Ba Ba
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 How much did June’s transactions increase or decrease stockholders’ equity?

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