On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month:Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for Common Stock, $22,000.Purchased supplies on account, $1,190.Earned sales commissions, receiving cash, $18,260.Paid rent on office and equipment for the month, $4,020.Paid creditor on account, $440.Paid dividends, $1,080.Paid automobile expenses (including rental charge) for month, $1,110, and miscellaneous expenses, $750.Paid office salaries, $2,340.Determined that the cost of supplies used was $660.

Here's a breakdown of the transactions for Planet Realty and how they affect the accounting equation…

Answered: On August 1, 20Y7, Rafael Masey…

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 38E: Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on...

Related questions

Question

On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month:

Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for Common Stock, $22,000.
Purchased supplies on account, $1,190.
Earned sales commissions, receiving cash, $18,260.
Paid rent on office and equipment for the month, $4,020.
Paid creditor on account, $440.
Paid dividends, $1,080.
Paid automobile expenses (including rental charge) for month, $1,110, and miscellaneous expenses, $750.
Paid office salaries, $2,340.
Determined that the cost of supplies used was $660.

Expert Solution