Question

On June 1 of the current year, Maria Edsall established a business to manage rental property. She completed the following transactions during June: Opened a business bank account with a deposit of $43,000 in exchange for capital stock. Purchased office supplies on account, $3,230. Received cash from fees earned for managing rental property, $8,850. Paid rent on office and equipment for the month, $3,970. Paid creditors on account, $1,470. Billed customers for fees earned for managing rental property, $7,350. Paid automobile expenses for month, $880, and miscellaneous expenses, $440. Paid office salaries, $2,790. Determined that the cost of supplies on hand was $1,910; therefore, the cost of supplies used was $1,320. Paid dividends $2,650. 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)

Answer 1

Transaction / Event	Assets			=	Liabilities	+	Stockholders' Equity
	Cash	Accounts Receivable	Supplies		Accounts Payable		Capital Stock	Retained Earnings
1.	43,000						43,000
2.			3,230		3,230
3.	8,850							8,850
4.	-3,970							- 3,970
5.	- 1,470				- 1,470
6.		7,350						7,350
7.	- 1,320							- 1,320
8.	- 2,790							- 2,790
9.			- 1,320					- 1,320
10.	- 2,650							- 2,650
Balances	$ 39,650	$ 7,350	$ 1,910		$ 1,760		$ 43,000	$ 4,150