Question

Jill Smith starts an apartment locator business that has the following transactions in the first month:

a) Smith invests $35,500 of personal funds to start the business.

b) She purchases on account office supplies costing $345.

c) She pays cash of $29,500 to acquire a lot next to the campus. This will be the future home of the business.

d) Smith locates apartments for client and receives cash of $1910.

e) Smith pays $110 of the account payable she created in transaction (b).

f) She pays $2000 of personal funds for a vacation.

g) She pays cash for expenses for office rent, $395, and utilities, $105.

h) The business sells office supplies to another business for its cost of $150.

i) Smith with drawls cash of $1200 personal use.

Account for these transactions and create a balance sheet as of the end of the month and income statement for the month on the next page.

Accounting for the Transactions:

Assets	a	b	c	d	e	f	g	h	i	j	Balance Month End
Cash
Office Supplies
Land
Liabilities
Accounts Payable
Owner’s Equity

Balance Sheet at Month End

Assets	$ Amount	Liabilities and Owners Equity	S Amount
Cash	$	Accounts Payable	$
Office Supplies	$	Owner’s Equity	$
Land	$
Total	$	Total	$

                           Income Statement for end of Month

$ Operating Revenue (for finding apartments)	$
Less Rent Cost	$
Less Utilities Cost	$
Net Income	$

Answer 1