PR 1-1A Transactions OBJ, 4 v Cash bal. at end of June: $21,020 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 $30,000 from personal funds. b. Purchased office supplies on account, $1,800. c. Received cash from fees earned for managing rental property, $10,000. d. Paid rent on office and equipment for the month, $4,500. Show Me How e. Paid creditors on account, $1,250. f. Billed customers for fees earned for managing rental property, $16,800. g. Paid automobile expenses (including rental charges) for the month, $750, and miscel- laneous expenses, $980. h. Paid office salaries, $4,000. i. Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120. j. Withdrew cash for personal use, $7,500. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: Assets = Liabilities + Owner's Equity Chad Wilson, Supplies Expense - Expense - Expense Accounts Accounts Chad Wilson, Fees Rent Salaries Auto Misc. Cash + Receivable + Supplies - Payable + Capital - Drawing + Earned - Expense - Expense Briefly explain why the owner's investment and revenues increased owner's 2. equity, while withdrawals and expenses decreased owner's equity. 3. Determine the net income for June. 4. How much did June's transactions increase or decrease Chad Wilson's capital?
PR 1-1A Transactions OBJ, 4 v Cash bal. at end of June: $21,020 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 $30,000 from personal funds. b. Purchased office supplies on account, $1,800. c. Received cash from fees earned for managing rental property, $10,000. d. Paid rent on office and equipment for the month, $4,500. Show Me How e. Paid creditors on account, $1,250. f. Billed customers for fees earned for managing rental property, $16,800. g. Paid automobile expenses (including rental charges) for the month, $750, and miscel- laneous expenses, $980. h. Paid office salaries, $4,000. i. Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120. j. Withdrew cash for personal use, $7,500. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: Assets = Liabilities + Owner's Equity Chad Wilson, Supplies Expense - Expense - Expense Accounts Accounts Chad Wilson, Fees Rent Salaries Auto Misc. Cash + Receivable + Supplies - Payable + Capital - Drawing + Earned - Expense - Expense Briefly explain why the owner's investment and revenues increased owner's 2. equity, while withdrawals and expenses decreased owner's equity. 3. Determine the net income for June. 4. How much did June's transactions increase or decrease Chad Wilson's capital?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:PR 1-1A Transactions
OBJ, 4
v Cash bal. at end of
June: $21,020
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 $30,000 from personal funds.
b. Purchased office supplies on account, $1,800.
c. Received cash from fees earned for managing rental property, $10,000.
d. Paid rent on office and equipment for the month, $4,500.
Show
Me
How
e. Paid creditors on account, $1,250.
f. Billed customers for fees earned for managing rental property, $16,800.
g. Paid automobile expenses (including rental charges) for the month, $750, and miscel-
laneous expenses, $980.
h. Paid office salaries, $4,000.
i. Determined that the cost of supplies on hand was $680; therefore, the cost of supplies
used was $1,120.
j. Withdrew cash for personal use, $7,500.
Instructions
1. Indicate the effect of each transaction and the balances after each transaction, using
the following tabular headings:
Assets
= Liabilities +
Owner's Equity
Chad Wilson,
Supplies
Expense - Expense - Expense
Accounts
Accounts
Chad Wilson,
Fees
Rent
Salaries
Auto
Misc.
Cash + Receivable + Supplies - Payable +
Capital
- Drawing + Earned - Expense - Expense
Briefly explain why the owner's investment and revenues increased owner's
2.
equity, while withdrawals and expenses decreased owner's equity.
3. Determine the net income for June.
4.
How much did June's transactions increase or decrease Chad Wilson's capital?
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