Chapter 01 Homework eBook Show Me How Print Item Transactions On June 1 of the current year, Chris Bates established a business to manage rental property. The following transactions were completed during June: a. Opened a business bank account with a deposit of $75,000 in exchange for common stock, b. Purchased office supplies on account, $2,200. c. Received cash from fees eamed for managing rental property, $19,500. d. Paid rent on office and equipment for the month, $8,000. e. Pald creditors on account, $1,850. f. Billed customers for fees earned for managing rental property, $6,000. g. Paid automobile expenses for month, $1,500, and miscellaneous expenses, $800. h. Paid office salaries, $5,500. i. Determined that the cost of supplies on hand was $550; therefore, the cost of supplies used was $1,650. j. Paid dividends, $4,000. Required: 1. Indicate the effect of each transaction and the balances after each transaction: If an amount box does not require an entry, leave it blank. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300) Assets Liabilities + Stockholders' Equity Auto Accounts + Receivable + Accounts Payable Common Stock Fees Earned Supp. Expense Rent Sal. Expense - Expense Misc. Expense Item Cash Supplies = + - Dividends + Expense Item a. a. b. b. b Bal. Bal. C. C. Bal. Bal. d. d. Bal. Bal. Chapter 01 Homework eBook Show Me How Print Item Bal Bal d. d. Bal Bal e. e. Bal Bal f. Bal Bal g. g. Ball Bal. h. h. Bal. Bal i. i. Bal. Bal j. j. Bal Bal by issuing common stock and revenues and by dividends and 2. Stockholders' equity is the right of stockholders (owners) to the assets of the business. These rights are expenses. 3. Determine the net income for June. $ 4. How much did June's transactions increase or decrease stockholders' equity? by $ Check My Work 5 more Check My Work uses remaining Previous Next >