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)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
Question
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)
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Transcribed Image Text:Item
a.
b.
Bal.
C.
Bal.
d.
Bal.
e.
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f.
Bal.
g.
Bal.
h.
Bal.
i.
Cash
Assets
+
Accounts
Receivable + Supplies
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☐☐☐☐▬▬▬▬▬▬
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= Liabilities +
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Payable
+
Common
Stock
-
Dividends
+
Fees
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Stockholders' Equity
Salaries
Expense
Rent
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How much did June’s transactions increase or decrease
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