1 2a 2b 2c

On August 1, 2049, 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 $25,000 in exchange for common stock b. Paid rent on office and equipment for the month, $2,800. c. Pald automobile expenses for month $1,500, and miscellaneous expenses, $700. d. Purchased office supplies on account, $1,150. e. Earned sales commissions, receiving cash, $21,000 f. Paid creditor on account, $850. g. Paid office salaries, $3,100 h. Paid dividends, $3,200. Determined that the cost of supplies on hand was $450; therefore, the cost of supplies used was $700. Required: 1. Indicate the effect of each transaction and the balances after each transaction, using the tabular headings in the exhibit below. In each transaction row (rows indicated by a letter), you must indicate the math sign (+ or -) in columns affected by the transaction. You will not need to enter math signs in the balance rows (rows indicated by Bal.). Entries of 0 (zero) are not required and will be cleared il entered. Assets = Liabilities + Stockholders' Equity Salaries Rent Accounts Common Sales Auto Supplies Misce Cash + Supplies - Payable + Stock Dividends + Commissions Expense Expense Expense Expense - Ex 2. a. Prepare an income statement for August. Refer to the list of Accounts, Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. You will not need to enter colons () on the income statement. Il a net loss has been incurred, enter that amount as a negative number using a minus sign. 2. b. Prepare a statement of stockholders' equity for August. Refer to the list of Accounts. Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a not loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. If an amount is zero, enter "o". 2. c. Prepare a balance sheet as of August 31. Refer to the list of Accounts, Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. 2. a Prepare an income statement for August. Refer to the list of Accounts, Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. You will not need to enter colons() on the income statement. If a net loss has been incurred, enter that amount as a negative number using a minus sign Western Realty Income Statement (Label) 1 Label) a 2b. Prepare a statement of stockholders' equity for August. Refer to the list of Accounts, Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. If an amount is zero, entero". Western Realty Statement of Stockholders' Equity (Label) Common Stock Retained Earnings Total 2 3 4 5 5 2. c. Prepare a balance sheet as of August 31. Refer to the list of Accounts Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Western Realty Balance Shoot Label) Assets 2 3 Liabilities Stockholders' Equity 3 9 20 11