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Transactions On April 1 of the current year, Morgan Jones established a business to manage rental property. She completed the following transactions during April: a. Opened a business bank account with a deposit of $60,000 in exchange for common stock. b. Purchased office supplies on account, $1,800. c. Received cash from fees earned for managing rental property, $22,300. d. Paid rent on office and equipment for the month, $7,000. e. Paid creditors on account, $1,100. f. Billed customers for fees earned for managing rental property, $3,600. g. Paid automobile expenses for month, $750, and miscellaneous expenses, $1,000. h. Paid office salaries, $4,000. i. Determined that the cost of supplies on hand was $250; therefore, the cost of supplies used was $1,550. J. Paid dividends, $5,000. Jequired: 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)

Transactions On April 1 of the current year, Morgan Jones established a business to manage rental property. She completed the following transactions during April: a. Opened a business bank account with a deposit of $60,000 in exchange for common stock. b. Purchased office supplies on account, $1,800. c. Received cash from fees earned for managing rental property, $22,300. d. Paid rent on office and equipment for the month, $7,000. e. Paid creditors on account, $1,100. f. Billed customers for fees earned for managing rental property, $3,600. g. Paid automobile expenses for month, $750, and miscellaneous expenses, $1,000. h. Paid office salaries, $4,000. i. Determined that the cost of supplies on hand was $250; therefore, the cost of supplies used was $1,550. J. Paid dividends, $5,000. Jequired: 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)

FINANCIAL ACCOUNTING
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** On April 1 of the current year, Morgan Jones established a business to manage rental property. She completed the following transactions during April: a. Opened a business bank account with a deposit of $60,000 in exchange for common stock. b. Purchased office supplies on account, $1,800. c. Received cash from fees earned for managing rental property, $22,300. d. Paid rent on office and equipment for the month, $7,000. e. Paid creditors on account, $1,100. f. Billed customers for fees earned for managing rental property, $3,600. g. Paid automobile expenses for the month, $750, and miscellaneous expenses, $1,000. h. Paid office salaries, $4,000. i. Determined that the cost of supplies on hand was $250; therefore, the cost of supplies used was $1,550. j. Paid dividends, $5,000. **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)
Transcribed Image Text:**Transactions** On April 1 of the current year, Morgan Jones established a business to manage rental property. She completed the following transactions during April: a. Opened a business bank account with a deposit of $60,000 in exchange for common stock. b. Purchased office supplies on account, $1,800. c. Received cash from fees earned for managing rental property, $22,300. d. Paid rent on office and equipment for the month, $7,000. e. Paid creditors on account, $1,100. f. Billed customers for fees earned for managing rental property, $3,600. g. Paid automobile expenses for the month, $750, and miscellaneous expenses, $1,000. h. Paid office salaries, $4,000. i. Determined that the cost of supplies on hand was $250; therefore, the cost of supplies used was $1,550. j. Paid dividends, $5,000. **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)
This image presents a section of a financial accounting homework assignment involving the analysis of various transactions and their effects on account balances. The table details different financial aspects such as Cash, Accounts Receivable, Supplies, Accounts Payable, Common Stock, Dividends, Fees Earned, Rent Expense, Salary Expense, Supplies Expense, Auto Expense, and Miscellaneous Expense. ### Explanation of Columns: 1. **Item**: Each row is labeled from 'a' to 'j', followed by 'Bal.' for balance after certain transactions. 2. **Cash**: Shows cash inflows and outflows for each transaction. 3. **Accounts Receivable**: Captures receivables, but no transactions are shown in this column. 4. **Supplies**: Details transactions involving supplies; both debit and credit entries are included. 5. **Accounts Payable**: Displays liabilities related to credit transactions for supplies or services. 6. **Common Stock**: Indicates the issuance of stock. 7. **Dividends**: Accounts for any dividends declared, only appearing on row 'j' with a withdrawal of 5,000. 8. **Fees Earned**: Reflects income from services rendered. 9. **Rent Expense**: Shows the rent expenses incurred. 10. **Salary Expense**: Captures expenses related to salaries, with 'i' and 'j' showing -4,000 entries. 11. **Supplies Expense**: Indicates an expense for supplies on rows 'i' and 'j' with -250. 12. **Auto Expense**: Shows expenses related to auto, consistently showing -750. 13. **Miscellaneous Expense**: There are no entries in this column. ### Key Observations: - Row 'a' begins with a cash inflow of 60,000, corresponding with Common Stock entry. - Row 'c' records a cash inflow of 22,300 for Fees Earned, alongside Rent Expense of -7,000. - Rows 'd' and 'g' involve decreases in cash due to undisclosed transactions. - Rows 'f', 'i', and 'j' capture salary expenses, while 'i' and 'j' also recognize supply-related expenditures. - The table uses checkmarks (✅) for accurate entries and an 'X' (❌) to denote errors, specifically in supplies entries on 'i' and 'j'. This template could help students understand the impact of transactions on
Transcribed Image Text:This image presents a section of a financial accounting homework assignment involving the analysis of various transactions and their effects on account balances. The table details different financial aspects such as Cash, Accounts Receivable, Supplies, Accounts Payable, Common Stock, Dividends, Fees Earned, Rent Expense, Salary Expense, Supplies Expense, Auto Expense, and Miscellaneous Expense. ### Explanation of Columns: 1. **Item**: Each row is labeled from 'a' to 'j', followed by 'Bal.' for balance after certain transactions. 2. **Cash**: Shows cash inflows and outflows for each transaction. 3. **Accounts Receivable**: Captures receivables, but no transactions are shown in this column. 4. **Supplies**: Details transactions involving supplies; both debit and credit entries are included. 5. **Accounts Payable**: Displays liabilities related to credit transactions for supplies or services. 6. **Common Stock**: Indicates the issuance of stock. 7. **Dividends**: Accounts for any dividends declared, only appearing on row 'j' with a withdrawal of 5,000. 8. **Fees Earned**: Reflects income from services rendered. 9. **Rent Expense**: Shows the rent expenses incurred. 10. **Salary Expense**: Captures expenses related to salaries, with 'i' and 'j' showing -4,000 entries. 11. **Supplies Expense**: Indicates an expense for supplies on rows 'i' and 'j' with -250. 12. **Auto Expense**: Shows expenses related to auto, consistently showing -750. 13. **Miscellaneous Expense**: There are no entries in this column. ### Key Observations: - Row 'a' begins with a cash inflow of 60,000, corresponding with Common Stock entry. - Row 'c' records a cash inflow of 22,300 for Fees Earned, alongside Rent Expense of -7,000. - Rows 'd' and 'g' involve decreases in cash due to undisclosed transactions. - Rows 'f', 'i', and 'j' capture salary expenses, while 'i' and 'j' also recognize supply-related expenditures. - The table uses checkmarks (✅) for accurate entries and an 'X' (❌) to denote errors, specifically in supplies entries on 'i' and 'j'. This template could help students understand the impact of transactions on
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