Opened a business bank account with a deposit of $35,000 in exchange for common stock. Purchased office supplies on account, $2,290. Received cash from fees earned for managing rental property, $6,190. Paid rent on office and equipment for the month, $2,810. Paid creditors on account, $1,040. Billed customers for fees earned for managing rental property, $5,200. Paid automobile expenses for month, $620, and miscellaneous expenses, $310. Paid office salaries, $1,980. Determined that the cost of supplies on hand was $1,350; therefore, the cost of supplies used was $940. Paid dividends, $1,870.
Opened a business bank account with a deposit of $35,000 in exchange for common stock. Purchased office supplies on account, $2,290. Received cash from fees earned for managing rental property, $6,190. Paid rent on office and equipment for the month, $2,810. Paid creditors on account, $1,040. Billed customers for fees earned for managing rental property, $5,200. Paid automobile expenses for month, $620, and miscellaneous expenses, $310. Paid office salaries, $1,980. Determined that the cost of supplies on hand was $1,350; therefore, the cost of supplies used was $940. Paid dividends, $1,870.
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:
- Opened a business bank account with a deposit of $35,000 in exchange for common stock.
- Purchased office supplies on account, $2,290.
- Received cash from fees earned for managing rental property, $6,190.
- Paid rent on office and equipment for the month, $2,810.
- Paid creditors on account, $1,040.
- Billed customers for fees earned for managing rental property, $5,200.
- Paid automobile expenses for month, $620, and miscellaneous expenses, $310.
- Paid office salaries, $1,980.
- Determined that the cost of supplies on hand was $1,350; therefore, the cost of supplies used was $940.
- Paid dividends, $1,870.
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