ACCOUNTING (LOOSELEAF)-W/STD.GDE+ACCESS
27th Edition
ISBN: 9781337692298
Author: WARREN
Publisher: CENGAGE L
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Chapter 1, Problem 1.4APR
1.
To determine
Assets = Liabilities + Shareholders Equity
Business transaction: Business transaction is a record of any economic activity, resulting in the change in the value of the assets, the liabilities, and the Shareholder’s equities, of a business. Business transaction is also referred to as financial transaction.
To Indicate: The effect of each given transaction of Company HMR on the accounting equation.
b)
To determine
To Prepare: The financial statements for Company HMR for the month ended July 31, 2019.
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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:
a. Opened a business bank account with a deposit of $29,000 from personal funds.
b. Purchased office supplies on account, $2,940.
c. Paid creditor on account, $1,860.
d. Earned sales commissions, receiving cash, $29,990.
e. Paid rent on office and equipment for the month, $5,880.
f. Withdrew cash for personal use, $9,000.
g. Paid automobile expenses (indluding rental charge) for the month, $2,820, and miscellaneous expenses. S1,350.
h. Paid office salaries, $3,540.
i. Determined that the cost of supplies on hand was $990; therefore, the cost of supplies used was $1,950.
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 neg
Assets
- Liabilities +
Owner's Equity
Accounts
Pat Glenn,…
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
+…
Transactions; Financial Statements
On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July:
a. Opened a business bank account with a deposit of $33,000 from personal funds.
b. Purchased office supplies on account, $3,310.
c. Paid creditor on account, $2,090.
d. Earned sales commissions, receiving cash, $33,790.
e. Paid rent on office and equipment for the month, $6,620.
f. Withdrew cash for personal use, $10,000.
g. Paid automobile expenses (including rental charge) for the month, $3,180, and miscellaneous expenses, $1,520.
h. Paid office salaries, $3,990.
i. Determined that the cost of supplies on hand was $1,120; therefore, the cost of supplies used was $2,190.
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…
Chapter 1 Solutions
ACCOUNTING (LOOSELEAF)-W/STD.GDE+ACCESS
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