On June 1, 2015, Lindsey Brown established Equity Realty. Lindsey completed the following transactions during the month of June:
a. Opened a business bank account with a deposit of $15,000 from personal funds.
b. Paid rent on office and equipment for the month, $4,000.
c. Paid automobile expenses for the month, $1,200, and miscellaneous expenses, $800.
d. Purchased supplies on account, $1,000.
e. Earned sales commissions, receiving cash, $18,500.
f. Paid creditor on account, $600.
g. Paid office salaries, $2,500.
h. Withdrew cash for personal use, $5,000.

Instructions
1. Indicate the effect of each transaction using the following tabular headings:
2. Prepare an income statement for June, a statement of owner€™s equity for June, and a balance sheet as at June 30, 2015.

Transcribed Image Text:

Assets = Liabilities + Owner's Equity Lindsey Accounts Brown, Lindsey Brown, Office Sales Rent Salaries Auto Misc. Cash + Supplies = Payable + Capital -withdrawals + Commissions-Expense-Expense-Expense-Expense