Les Stanley established an insurance agency on July 1, 20Y5, and completed the following transactions during July:Opened a business bank account in the name of Stanley Insurance Inc., with a deposit of $65,000 in exchange for common stock.Borrowed $120,000 by issuing a note payable.Received cash from fees earned, $40,000.Paid rent on office and equipment for the month, $5,000.Provided service to customers on account, $ 20,000.Paid automobile expense for the month, $3,500, and miscellaneous expense, $1,000.Paid office salaries, $6,500.Paid interest on the note payable, $500.Purchased land as a future building site, paying cash of $100,000.Paid dividends, $3,000.InstructionsIndicate the effect of each transaction and the balances after each transaction, using the integrated financial statement framework

Name: Les Stanley established an insurance agency on July 1, 20Y5, and compl
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Description: Les Stanley established an insurance agency on July 1, 20Y5, and completed the following transactions during July:Opened a business bank account in the name of Stanley Insurance Inc., with a deposit of $65,000 in exchange for common stock.Borrowed $1

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Answered: Les Stanley established an insurance…

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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Les Stanley established an insurance agency on July 1, 20Y5, and completed the following transactions during July:

Opened a business bank account in the name of Stanley Insurance Inc., with a deposit of $65,000 in exchange for common stock.
Borrowed $120,000 by issuing a note payable.
Received cash from fees earned, $40,000.
Paid rent on office and equipment for the month, $5,000.
Provided service to customers on account, $ 20,000.
Paid automobile expense for the month, $3,500, and miscellaneous expense, $1,000.
Paid office salaries, $6,500.
Paid interest on the note payable, $500.
Purchased land as a future building site, paying cash of $100,000.
Paid dividends, $3,000.

Instructions

Indicate the effect of each transaction and the balances after each transaction, using the integrated financial statement framework

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