Question

On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during...

On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July:

  1. Opened a business bank account with a deposit of $32,000 from personal funds.
  2. Purchased office supplies on account, $3,280.
  3. Paid creditor on account, $2,080.
  4. Earned sales commissions, receiving cash, $33,500.
  5. Paid rent on office and equipment for the month, $6,570.
  6. Withdrew cash for personal use, $10,000.
  7. Paid automobile expenses (including rental charge) for the month, $3,150, and miscellaneous expenses, $1,510.
  8. Paid office salaries, $3,950.
  9. Determined that the cost of supplies on hand was $1,110; therefore, the cost of supplies used was $2,170.

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 + Supplies = Accounts
Payable		 + Pat Glenn,
Capital		 - Pat Glenn,
Drawing		 + Sales
Commissions		 - Rent Expense - Office Salaries
Expense		 - Auto
Expense		 - Supplies
Expense		 - Miscellaneous
Expense
a.
b.
Bal.
c.
Bal.
d.
Bal.
e.
Bal.
f.
Bal.
g.
Bal.
h.
Bal.
i.
Bal.

2. Prepare an income statement for July.

Half Moon Realty
Income Statement
For the Month Ended July 31, 2019
$
Expenses:
$
Total expenses
$

Prepare a statement of owner's equity for July. If an amount is zero, enter "0".

Half Moon Realty
Statement of Owner's Equity
For the Month Ended July 31, 2019
$
$
$

Prepare a balance sheet as of July 31.

Half Moon Realty
Balance Sheet
July 31, 2019
Assets
$
Total assets $
Liabilities
$
Owner's Equity
Total liabilities and owner's equity $
Business   Accounting   
0 0
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Homework Answers

Answer #1
Half Moon Realty
Assets = Liabilities + Shareholders Equity
Cash + Supplies = Accounts + Pat Glenn - Pat Glenn + Sales - Rent - Salary - Supplies - Misc
Paybale Capital Drawings Commissions Expense Expense Expense Expense
a 32000 32000
b 3280 3280
c -2080 -2080
d 33500 33500
e -6570 6570
f -10000 10000
g -4660 3150 1510
h -3950 3950
i -2170 2170
Totals 38240 1110 1200 32000 10000 33500 9720 3950 2170 1510
+ = 1200 + 38150
39350 39350
Half Moon Realty
Income Statement
For the Month Ended July 31, 2019
Sales Commission 33500
Less: Expenses
Rent Expense 9720
Salaries Expense 3950
Supplies Expense 2170
Misc Expense 1510
Total Expense 17350
Net Income 16150
Half Moon Realty
Statement of Changes in Equity
For the Month Ended July 31, 2019
Pat Glenns Capital 32000
Add: Investment made by owner 0
Add: Net Profit 16150 16150
Less: Withdrawals by owner 10000
PAT Glenn Capital 31 July 2019 38150
0 0
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