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)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June:

  1. Opened a business bank account with a deposit of $30,000 from personal funds.
  2. Purchased office supplies on account, $1,800.
  3. Received cash from fees earned for managing rental property, $10,000.
  4. Paid rent on office and equipment for the month, $4,500.
  5. Paid creditors on account, $1,250.
  6. Billed customers for fees earned for managing rental property, $16,800.
  7. Paid automobile expenses (including rental charges) for the month, $750, and miscellaneous expenses, $980.
  8. Paid office salaries, $4,000.
  9. Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120.
  10. Withdrew cash for personal use, $7,500.

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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