TransactionsOn April 1 of the current year, Andrea Byrd established a business to manage rental property. She completed the following transactions during April:Opened a business bank account with a deposit of $45,000 from personal funds.Purchased office supplies on account, $2,000.Received cash from fees earned for managing rental property, $8,500.Paid rent on office and equipment for the month, $5,000.Paid creditors on account, $1,375.Billed customers for fees earned for managing rental property, $11,250.Paid automobile expenses for month, $840, and miscellaneous expenses, $900.Paid office salaries, $3,600.Determined that the cost of supplies on hand was $550; therefore, the cost of supplies used was $1,450.Withdrew cash for personal use, $2,000.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)

Name: TransactionsOn April 1 of the current year, Andrea Byrd established a
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Description: TransactionsOn April 1 of the current year, Andrea Byrd established a business to manage rental property. She completed the following transactions during April:Opened a business bank account with a deposit of $45,000 from personal funds.Purchased off

Given: Business bank deposit = $ 45,000 Purchased office supplies = $ 2,000. Cash received from fees…

Answered: 1. Indicate the effect of each…

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, Andrea Byrd established a business to manage rental property. She completed the following transactions during April:

Opened a business bank account with a deposit of $45,000 from personal funds.
Purchased office supplies on account, $2,000.
Received cash from fees earned for managing rental property, $8,500.
Paid rent on office and equipment for the month, $5,000.
Paid creditors on account, $1,375.
Billed customers for fees earned for managing rental property, $11,250.
Paid automobile expenses for month, $840, and miscellaneous expenses, $900.
Paid office salaries, $3,600.
Determined that the cost of supplies on hand was $550; therefore, the cost of supplies used was $1,450.
Withdrew cash for personal use, $2,000.

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)

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