Transactions On June 1 of the current year, Pamela Schatz established a business to manage rental property. She completed the following transactions during June: Opened a business bank account with a deposit of $28,000 from personal funds. Purchased office supplies on account, $2,490. Received cash from fees earned for managing rental property, $6,980. Paid rent on office and equipment for the month, $3,050. Paid creditors on account, $1,130. Billed customers for fees earned for managing rental property, $5,650. Paid automobile expenses (including rental charges) for the month, $680, and miscellaneous expenses, $340. Paid office salaries, $2,150. Determined that the cost of supplies on hand was $1,470; therefore, the cost of supplies used was $1,020. Withdrew cash for personal use, $2,030. 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 Item Cash + Accounts Receivable + Supplies = Accounts Payable + Pamela Schatz, Capital - Pamela Schatz, Drawing

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 June 1 of the current year, Pamela Schatz established a business to manage rental property. She completed the following transactions during June:

Opened a business bank account with a deposit of $28,000 from personal funds.
Purchased office supplies on account, $2,490.
Received cash from fees earned for managing rental property, $6,980.
Paid rent on office and equipment for the month, $3,050.
Paid creditors on account, $1,130.
Billed customers for fees earned for managing rental property, $5,650.
Paid automobile expenses (including rental charges) for the month, $680, and miscellaneous expenses, $340.
Paid office salaries, $2,150.
Determined that the cost of supplies on hand was $1,470; therefore, the cost of supplies used was $1,020.
Withdrew cash for personal use, $2,030.

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
Item	Cash	+	Accounts Receivable	+	Supplies	=	Accounts Payable	+	Pamela Schatz, Capital	-	Pamela Schatz, Drawing

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