TransactionsOn June 1 of the current year, Pamela Schatz established a business to manage rental property. She completed the following transactions during June:Opened a business bank account with a deposit of $33,000 from personal funds.Purchased office supplies on account, $3,000.Received cash from fees earned for managing rental property, $8,200.Paid rent on office and equipment for the month, $3,680.Paid creditors on account, $1,360.Billed customers for fees earned for managing rental property, $6,810.Paid automobile expenses (including rental charges) for the month, $820, and miscellaneous expenses, $410.Paid office salaries, $2,590.Determined that the cost of supplies on hand was $1,770; therefore, the cost of supplies used was $1,230.Withdrew cash for personal use, $2,450.Required:1. Indicate the effect of each transaction and the balances after each transaction:For those boxes in which no entry is required, leave the box blank.For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300)

An accounting transaction is a business activity or event that causes a measurable change in the…

Answered: On June 1 of the current year, Pamela…

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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Transactions

On June 1 of the current year, Pamela Schatz established a business to manage rental property. She completed the following transactions during June:

Opened a business bank account with a deposit of $33,000 from personal funds.
Purchased office supplies on account, $3,000.
Received cash from fees earned for managing rental property, $8,200.
Paid rent on office and equipment for the month, $3,680.
Paid creditors on account, $1,360.
Billed customers for fees earned for managing rental property, $6,810.
Paid automobile expenses (including rental charges) for the month, $820, and miscellaneous expenses, $410.
Paid office salaries, $2,590.
Determined that the cost of supplies on hand was $1,770; therefore, the cost of supplies used was $1,230.
Withdrew cash for personal use, $2,450.

Required:

1. Indicate the effect of each transaction and the balances after each transaction:
For those boxes in which no entry is required, leave the box blank.
For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300)

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