Transactions; Financial StatementsOn 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 $34,000 from personal funds.Purchased office supplies on account, $3,470.Paid creditor on account, $2,190.Earned sales commissions, receiving cash, $35,390.Paid rent on office and equipment for the month, $6,940.Withdrew cash for personal use, $11,000.Paid automobile expenses (including rental charge) for the month, $3,330, and miscellaneous expenses, $1,590.Paid office salaries, $4,180.Determined that the cost of supplies on hand was $1,170; therefore, the cost of supplies used was $2,300.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-MiscellaneousExpensea. b. Bal. c. Bal. d. Bal. e. Bal. f. Bal. g. Bal. h. Bal. i. Bal.

The accounting equation records the transactions in equation for such as assets equal to sum of…

Answered: Transactions; Financial Statements On…

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 $34,000 from personal funds.
Purchased office supplies on account, $3,470.
Paid creditor on account, $2,190.
Earned sales commissions, receiving cash, $35,390.
Paid rent on office and equipment for the month, $6,940.
Withdrew cash for personal use, $11,000.
Paid automobile expenses (including rental charge) for the month, $3,330, and miscellaneous expenses, $1,590.
Paid office salaries, $4,180.
Determined that the cost of supplies on hand was $1,170; therefore, the cost of supplies used was $2,300.

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.

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