On April 1, 20Y7, Maria Adams established Custom Realty. Maria completed the following transactions during the month

Question:

On April 1, 20Y7, 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 the month, $1,350, and miscellaneous expenses, $600.

d. Purchased office supplies on account, $1,200.

e. Earned sales commissions (revenue) from selling real estate, 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:

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

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting

ISBN: 9781337902687

28th Edition

Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider

Question Posted: