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Transactions; Financial Statements On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April: Opened a business bank account with a deposit of $26,000 in exchange for common stock. Purchased supplies on account, $2,620. Paid creditor on account, $1,660. Earned sales commissions, receiving cash, $26,750. Paid rent on office and equipment for the month, $5,240. Paid dividends, $8,000. Paid automobile expenses for month, $2,510, and miscellaneous expenses, $1,200. Paid office salaries, $3,160. Determined that the cost of supplies on hand was $880; therefore, the cost of supplies used was $1,740. Required: Question Content Area 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 using a minus sign. 2. Prepare an income statement for April.

Transactions; Financial Statements On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April: Opened a business bank account with a deposit of $26,000 in exchange for common stock. Purchased supplies on account, $2,620. Paid creditor on account, $1,660. Earned sales commissions, receiving cash, $26,750. Paid rent on office and equipment for the month, $5,240. Paid dividends, $8,000. Paid automobile expenses for month, $2,510, and miscellaneous expenses, $1,200. Paid office salaries, $3,160. Determined that the cost of supplies on hand was $880; therefore, the cost of supplies used was $1,740. Required: Question Content Area 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 using a minus sign. 2. Prepare an income statement for April.

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; Financial Statements

On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April:

  1. Opened a business bank account with a deposit of $26,000 in exchange for common stock.
  2. Purchased supplies on account, $2,620.
  3. Paid creditor on account, $1,660.
  4. Earned sales commissions, receiving cash, $26,750.
  5. Paid rent on office and equipment for the month, $5,240.
  6. Paid dividends, $8,000.
  7. Paid automobile expenses for month, $2,510, and miscellaneous expenses, $1,200.
  8. Paid office salaries, $3,160.
  9. Determined that the cost of supplies on hand was $880; therefore, the cost of supplies used was $1,740.

Required:

Question Content Area

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 using a minus sign.

2.  Prepare an income statement for April.

2. Prepare an income statement for April. Custom Realty Income Statement For the Month Ended April 30, 20Y8 Sales commissions Expenses: Supplies expense Total expenses 69 001
Transcribed Image Text:2. Prepare an income statement for April. Custom Realty Income Statement For the Month Ended April 30, 20Y8 Sales commissions Expenses: Supplies expense Total expenses 69 001
a. b. Bal. C. Bal. d. Bal. e. Bal. f. Bal. g. Bal. h. Bal. i. Bal. Cash 26,000 26,000 Assets + Supplies = Liabilities + Accounts Payable + Common Stock 26,000 ✔ 26,000 ✓ - Dividends + Sales Commissions Stockholders' Equity Salaries Expense Rent Expense Auto Expense -2,510 X Supplies Miscellaneous Expense Expense
Transcribed Image Text:a. b. Bal. C. Bal. d. Bal. e. Bal. f. Bal. g. Bal. h. Bal. i. Bal. Cash 26,000 26,000 Assets + Supplies = Liabilities + Accounts Payable + Common Stock 26,000 ✔ 26,000 ✓ - Dividends + Sales Commissions Stockholders' Equity Salaries Expense Rent Expense Auto Expense -2,510 X Supplies Miscellaneous Expense Expense
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