Transactions; Financial Statements On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July: Opened a business bank account with a deposit of $25,000 from personal funds. Purchased office supplies on account, $2,540. Paid creditor on account, $1,610. Earned sales commissions, receiving cash, $25,920. Paid rent on office and equipment for the month, $5,080. Withdrew cash for personal use, $8,000. Paid automobile expenses (including rental charge) for the month, $2,440, and miscellaneous expenses, $1,170. Paid office salaries, $3,060. Determined that the cost of supplies on hand was $860; therefore, the cost of supplies used was $1,680. 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. If required, enter negative values as negative numbers. Assets = Liabilities + Owner's Equity Cash + Supplies = AccountsPayable + Pat Glenn,Capital - Pat Glenn,Drawing + SalesCommissions - Rent Expense - Office SalariesExpense - AutoExpense - SuppliesExpense - MiscellaneousExpense a. b. Bal. c. Bal. d. Bal. e. Bal. f. Bal. g. Bal. h. Bal. i. Bal. 2. Prepare an income statement for July. Half Moon Realty Income Statement For the Month Ended July 31, 2019 Sales commissions $ Expenses: Rent expense $ Office salaries expense Automobile expense Supplies expense Miscellaneous expense Total expenses Net income $ Prepare a statement of owner's equity for July. If an amount is zero, enter "0". Half Moon Realty Statement of Owner's Equity For the Month Ended July 31, 2019 Pat Glenn, capital,July 1, 2019 $ Investment on July 1, 2019 $ Net income for July Withdrawals Increase in owners equity Pat Glenn, capital, July 31, 2019 $ Prepare a balance sheet as of July 31. Half Moon Realty Balance Sheet July 31, 2019 Assets Cash $ Supplies Total assets $ Liabilities Accounts payable $ Owner's Equity Pat Glenn, capital Total liabilities and owner's equity

Transactions; Financial Statements On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July: Opened a business bank account with a deposit of $25,000 from personal funds. Purchased office supplies on account, $2,540. Paid creditor on account, $1,610. Earned sales commissions, receiving cash, $25,920. Paid rent on office and equipment for the month, $5,080. Withdrew cash for personal use, $8,000. Paid automobile expenses (including rental charge) for the month, $2,440, and miscellaneous expenses, $1,170. Paid office salaries, $3,060. Determined that the cost of supplies on hand was $860; therefore, the cost of supplies used was $1,680. 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. If required, enter negative values as negative numbers. Assets = Liabilities + Owner's Equity Cash + Supplies = AccountsPayable + Pat Glenn,Capital - Pat Glenn,Drawing + SalesCommissions - Rent Expense - Office SalariesExpense - AutoExpense - SuppliesExpense - MiscellaneousExpense a. b. Bal. c. Bal. d. Bal. e. Bal. f. Bal. g. Bal. h. Bal. i. Bal. 2. Prepare an income statement for July. Half Moon Realty Income Statement For the Month Ended July 31, 2019 Sales commissions $ Expenses: Rent expense $ Office salaries expense Automobile expense Supplies expense Miscellaneous expense Total expenses Net income $ Prepare a statement of owner's equity for July. If an amount is zero, enter "0". Half Moon Realty Statement of Owner's Equity For the Month Ended July 31, 2019 Pat Glenn, capital,July 1, 2019 $ Investment on July 1, 2019 $ Net income for July Withdrawals Increase in owners equity Pat Glenn, capital, July 31, 2019 $ Prepare a balance sheet as of July 31. Half Moon Realty Balance Sheet July 31, 2019 Assets Cash $ Supplies Total assets $ Liabilities Accounts payable $ Owner's Equity Pat Glenn, capital Total liabilities and owner's equity

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; Financial Statements

On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July:

Opened a business bank account with a deposit of $25,000 from personal funds.
Purchased office supplies on account, $2,540.
Paid creditor on account, $1,610.
Earned sales commissions, receiving cash, $25,920.
Paid rent on office and equipment for the month, $5,080.
Withdrew cash for personal use, $8,000.
Paid automobile expenses (including rental charge) for the month, $2,440, and miscellaneous expenses, $1,170.
Paid office salaries, $3,060.
Determined that the cost of supplies on hand was $860; therefore, the cost of supplies used was $1,680.

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. If required, enter negative values as negative numbers.

Assets

Liabilities +

Owner's Equity

Cash

Supplies

Accounts
Payable

Pat Glenn,
Capital

Pat Glenn,
Drawing

Sales
Commissions

Rent Expense

Office Salaries
Expense

Auto
Expense

Supplies
Expense

Miscellaneous
Expense

Bal.

2. Prepare an income statement for July.

Half Moon Realty
Income Statement
For the Month Ended July 31, 2019
Sales commissions		$
Expenses:
Rent expense	$
Office salaries expense
Automobile expense
Supplies expense
Miscellaneous expense
Total expenses
Net income		$

Prepare a statement of owner's equity for July. If an amount is zero, enter "0".

Half Moon Realty
Statement of Owner's Equity
For the Month Ended July 31, 2019
Pat Glenn, capital,July 1, 2019		$
Investment on July 1, 2019	$
Net income for July
Withdrawals
Increase in owners equity
Pat Glenn, capital, July 31, 2019		$

Prepare a balance sheet as of July 31.

Half Moon Realty
Balance Sheet
July 31, 2019
Assets
Cash	$
Supplies
Total assets	$
Liabilities
Accounts payable	$
Owner's Equity
Pat Glenn, capital
Total liabilities and owner's equity

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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