On April 1, 2016, Maria Adams established Custom Realty. Maria completed the following transactions during the month

Question:

On April 1, 2016, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April:
a. Opened a business bank account with a deposit of $24,000 from personal funds.
b. Paid rent on office and equipment for the month, $3,600.
c. Paid automobile expenses (including rental charge) for month, $1,350, and miscellaneous expenses, $600.
d. Purchased office supplies on account, $1,200.
e. Earned sales commissions, receiving cash, $19,800.
f. Paid creditor on account, $750.
g. Paid office salaries, $2,500.
h. Withdrew cash for personal use, $3,500.
i. Determined that the cost of supplies on hand was $300; therefore, the cost of supplies used was $900.
Instructions
1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:
On April 1, 2016, Maria Adams established Custom Realty. Maria

2. Prepare an income statement for April, a statement of owner's equity for April, and a balance sheet as of April 30.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Accounting

ISBN: 978-1285743615

26th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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