On June 1 of the current year, Chris Bates established a business to manage rental property. The following transactions were completed during June:a. Opened a business bank account with a deposit of $44,000 in exchange for common stock.b. Purchased office supplies on account, $2,810.c. Received cash from fees earned for managing rental property, $7,710.d. Paid rent on office and equipment for the month, $3,460.e. Paid creditors on account, $1,280.f. Billed customers for fees earned for managing rental property, $6,400.g. Paid automobile expenses for month, $770, and miscellaneous expenses, $380.h. Paid office salaries, $2,430.i. Determined that the cost of supplies on hand was $1,660; therefore, the cost of supplies used was $1,150.j. Paid dividends, $2,300.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)

Accounting Equation is a statement which shows the effect of each transaction on assets, liabilities…

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)

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)

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

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

On June 1 of the current year, Chris Bates established a business to manage rental property. The following transactions were completed during June:
a. Opened a business bank account with a deposit of $44,000 in exchange for common stock.
b. Purchased office supplies on account, $2,810.
c. Received cash from fees earned for managing rental property, $7,710.
d. Paid rent on office and equipment for the month, $3,460.
e. Paid creditors on account, $1,280.
f. Billed customers for fees earned for managing rental property, $6,400.
g. Paid automobile expenses for month, $770, and miscellaneous expenses, $380.
h. Paid office salaries, $2,430.
i. Determined that the cost of supplies on hand was $1,660; therefore, the cost of supplies used was $1,150.
j. Paid dividends, $2,300.
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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