Transactions; financial statements OBJ. 4, 5 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 in exchange for common stock.

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. Paid dividends, $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:
Assets 5 Liabilities 1 Stockholders’ Equity Cash + Supplies = Accounts Payable +
Common Stock – Dividends +
Sales Commissions –
Rent Expense –
Salaries Expense –
Auto Expense –
Supplies Expense –
Misc.
Expense 2. Prepare an income statement for April, a retained earnings statement for April, and a balance sheet as of April 30.