On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June:a. Opened a business bank account with a deposit of $39,000 from personal funds.b. Purchased office supplies on account, $2,320.C. Received cash from fees earned for managing rental property, $6,600.d. Paid rent on office and equipment for the month, $2,85s0.e. Paid creditors on account, $1,060.f. Billed customers for fees eamed for managing rental property, $5,280.g. Paid automobile expenses (including rental charges) for the month, $630, and miscellaneous expenses, $320.h. Paid office salaries, $2,010.i. Determined that the cost of supplies on hand was $1,370; therefore, the cost of supplies used was $950.j. Withdrew cash for personal use, $1,900.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)AssetsLiabilitiesOwner's EquityAccountsAccountsChad Wilson,Chad Wilson.SalariesSupplies+ Fees Earned -Rent Expense -Auto Expense - Misc. ExpenseItemCashSupplies+=ReceivablePayableCapitalDrawingExpenseExpense39,000V39,000a.b.2,320 V2,320Bal.39,000 V2,3202,32039,000C.6,600V6,600 v45,6002,320Bal.2,32039,0006,600d.-2,850-2,850Bal.42,7502,3202,32039,0006,600 V-2,850e.-1,060 V-1,06041,690 V1,260 V6,600 VBal.2,32039,000-2,8505,280V5,280 Vf.41,690 V5,280 V2,3201,260 V11,880VBal.39,000-2,8509.-950 V-630-32040,740V5,280V2,3201,26011,880-630 VBal.39,000-2,850-320h.-2,010-2,01038,730V5,280V2,32011,880 V-2,010 v-630 V-320 VBal.1,26039,000-2,850i.-950-950 VBal.38,7305,2801,3701,26039,00011,880 V-2,850-2,010-950-630-320J.-1,900-1,90036,830 V5,280 v1,370 V11,880V-2,850 V-2,010V-950-630 V-320 VBal.1,26039,000-1,9002. Owner's equity is the right of owners to the assets of the business. These rights are increased v by owner's investments and revenues and decreased v by owner's withdrawals and expenses.3. Determine the net income for June.5.120v5,120V4. June's transactions (a-j) increased or decreased Chad Wilson's capital to?Increased v to s 44,120 x

Name: On June 1 of the current year, Chad Wilson established a business to
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Description: On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June:a. Opened a business bank account with a deposit of $39,000 from personal funds.b. Purchased office supp

I observed that You did all the solution Right , But your capital balance do not match , Therefore i…

Answered: Owner's Equity 5.120 reed y te 4120 x

Business

Accounting

Owner's Equity 5.120 reed y te 4120 x

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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

Topic Video

Question

On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June:
a. Opened a business bank account with a deposit of $39,000 from personal funds.
b. Purchased office supplies on account, $2,320.
C. Received cash from fees earned for managing rental property, $6,600.
d. Paid rent on office and equipment for the month, $2,85s0.
e. Paid creditors on account, $1,060.
f. Billed customers for fees eamed for managing rental property, $5,280.
g. Paid automobile expenses (including rental charges) for the month, $630, and miscellaneous expenses, $320.
h. Paid office salaries, $2,010.
i. Determined that the cost of supplies on hand was $1,370; therefore, the cost of supplies used was $950.
j. Withdrew cash for personal use, $1,900.
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)
Assets
Liabilities
Owner's Equity
Accounts
Accounts
Chad Wilson,
Chad Wilson.
Salaries
Supplies
+ Fees Earned -
Rent Expense -
Auto Expense - Misc. Expense
Item
Cash
Supplies
+
=
Receivable
Payable
Capital
Drawing
Expense
Expense
39,000V
39,000
a.
b.
2,320 V
2,320
Bal.
39,000 V
2,320
2,320
39,000
C.
6,600V
6,600 v
45,600
2,320
Bal.
2,320
39,000
6,600
d.
-2,850
-2,850
Bal.
42,750
2,320
2,320
39,000
6,600 V
-2,850
e.
-1,060 V
-1,060
41,690 V
1,260 V
6,600 V
Bal.
2,320
39,000
-2,850
5,280V
5,280 V
f.
41,690 V
5,280 V
2,320
1,260 V
11,880V
Bal.
39,000
-2,850
9.
-950 V
-630
-320
40,740V
5,280V
2,320
1,260
11,880
-630 V
Bal.
39,000
-2,850
-320
h.
-2,010
-2,010
38,730V
5,280V
2,320
11,880 V
-2,010 v
-630 V
-320 V
Bal.
1,260
39,000
-2,850
i.
-950
-950 V
Bal.
38,730
5,280
1,370
1,260
39,000
11,880 V
-2,850
-2,010
-950
-630
-320
J.
-1,900
-1,900
36,830 V
5,280 v
1,370 V
11,880V
-2,850 V
-2,010V
-950
-630 V
-320 V
Bal.
1,260
39,000
-1,900
2. Owner's equity is the right of owners to the assets of the business. These rights are increased v by owner's investments and revenues and decreased v by owner's withdrawals and expenses.
3. Determine the net income for June.
5.120v
5,120V
4. June's transactions (a-j) increased or decreased Chad Wilson's capital to?
Increased v to s 44,120 x

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