On April 1, 2008, Britt Quinn established Uptown Realty. Britt completed the following transactions during the month of April:

a. Opened a business bank account with a deposit of \(\$ 30,000\) in exchange for capital stock.

b. Paid rent on office and equipment for the month, \(\$ 2,200\).

c. Paid automobile expenses (including rental charge) for month, \(\$ 1,200\), and miscellaneous expenses, \(\$ 650\).

d. Purchased supplies (pens, file folders, and copy paper) on account, \(\$ 200\).

e. Earned sales commissions, receiving cash, \(\$ 20,800\).

f. Paid creditor on account, \(\$ 150\).

g. Paid office salaries, \(\$ 3,600\).

h. Paid dividends of \(\$ 1,500\).

i. Determined that the cost of supplies on hand was \(\$ 40\); therefore, the cost of supplies used was \(\$ 160\).

{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 retained earnings statement for April, and a balance sheet as of April 30 .

Transcribed Image Text:

Cash Assets = Liabilities + Stockholders' Equity + Supplies Accounts Payable Capital Stock Sales Dividends Commissions Office Salaries Expense Rent Auto Supplies Misc Expense Expense Expense Expense