On June 1 of the current year, Doni Gilmore established a business to manage rental prop- erty. She completed the following transactions during June:

a. Opened a business bank account with a deposit of $25,000 in exchange for capital stock.

b. Purchased supplies (pens, file folders, and copy paper) on account, $1,150.

c. Received cash from fees earned for managing rental property, $4.500.

d. Paid rent on office and equipment for the month, $1,500.

e. Paid creditors on account, $600.

f. Billed customers for fees earned for managing rental property, $2,250. g. Paid automobile expenses (including rental charges) for month, $400, and miscellaneous expenses, $180. h. Paid office salaries, $1,200. i. Determined that the cost of supplies on hand was $380; therefore, the cost of supplies used was $770. j. Paid dividends of $1,000. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:

2, “8 Briefly explain why the stockholders’ investment and revenues increased stockholders’
equity, while dividends and expenses decreased stockholders’ equity.

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Assets = Liabilities + Stockholders' Equity Accounts Accounts Capital Cash + Receivable + Supplies Payable + Stock - Fees Dividends Earned Rent Salaries Supplies Expense Expense Expense Auto Expense Expense Misc.