e PK 1-1A transactions Obj. 4 malat end of On April 1 of the current year, Morgan Jones established a business to manage rental property. She ril: $63,450. completed the following transactions during April: a. Opened a business bank account with a deposit of $60,000 in exchange for common stock. b. Purchased office supplies on account, $1,800. ow c Received cash from fees earned for managing rental property. 522,300. d. Paid rent on office and equipment for the month, 57,000. Paid creditors on account, $1,100. f. Billed customers for fees earned for managing rental property, $3,600. 9. Paid automobile expenses for month, $750, and miscellaneous expenses. $1,000. h. Paid office salaries, $4,000. i. Determined that the cost of supplies on hand was $250, therefore, the cost of supplies used was $1,550. j. Paid dividends, 55,000. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the follow- ing tabular headings: Assets Liabilities + Stockholders Equity Accounts Accounts Common Fees Rent Salaries Supplies Auto Misc. eceivable + Supplies - Payable + Stock Dividends + Earned - Expense Expense Expense Expense Expense 2. Briefly explain why issuing common stock and revenues increased stockholders equity, while dividends and expenses decreased stockholders' equity. 3. Determine the net income for April 4. How much did April's transactions increase or decrease stockholders' equity