Transactions; financial statements Obj. 4, 5 On August 1, 20Y9, Brooke Kline established Western Realty. Brooke completed the following transactions during the month of August:

a. Opened a business bank account with a deposit of $35,000 in exchange for common stock.

b. Purchased supplies on account, $2,750.

c. Paid creditor on account, $1,800.

d. Earned sales commissions, receiving cash, $52,800.

e. Paid rent on office and equipment for the month, $4,500.

f. Paid dividends, $3,000.

g. Paid automobile expenses for month, $1,100, and miscellaneous expenses, $1,200.

h. Paid office salaries, $5,250.

i. Determined that the cost of supplies on hand was $1,750; therefore, the cost of supplies used was $1,000.

Instructions 1 Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:

Assets 5 Liabilities 1 Stockholders’ Equity Cash 1 Supplies 5 Accounts Payable 1 Common Stock 2Dividends1 Sales Commissions 2 Salaries Expense 2 Rent Expense 2 Auto Expense 2 Supplies Expense 2 Misc.

Expense 2 Prepare an income statement for August, a statement of stockholders’ equity for August, and a balance sheet as of August 31.

AppendixLO1