eBook Show Me How Calculator Transactions On April 1 of the current year, Morgan Jones established a business to manage rental property. She completed the following transactions during April: a. Opened a business bank account with a deposit of $25,000 in exchange for common stock b. Purchased office supplies on account, $2,980. C. Received cash from fees earned for managing rental property, $8,170. d. Paid rent on office and equipment for the month, $3,660. e. Pald creditors on account, $1,360. f. Billed customers for fees earned for managing rental property, $6,780. g. Paid automobile expenses for month, $810, and miscellaneous expenses, $410. h. Paid office salaries, $2,580. 1. Determined that the cost of supplies on hand was $1,760; therefore, the cost of supplies used was $1,220. 1. Paid dividends, $2,440. Required: 1. Indicate the effect of each transaction and the balances after each transaction: For those boxes in which no entry is required, leave the box blank. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300) Assets Liabilities + Stockholder Item Cash Accounts Receivable + Supplies Accounts Payable + Common Stock Dividends + Fees Earned Rent Expense a. 25,000 25,000 b. 2,980 Bal. 25,000 8,1707 C. Previous Next > Check My Work All work saved Save and Exit Submit Assignment for Grading 113 w G tockholders' Equity Auto t Expense Sal. Expense Supp. Expense Misc. Expense Item Expense a. b. Bal. c. Bal. d. 3,660 X Bal. e. Bal. f. Accounting numeric field Bal. g. Bal. h. Bal. Previous Next Save and Exit Submit Assignment for Grading Bal. by issuing common stock and 2. Stockholders' equity is the right of stockholders (owners) to the assets of the business. These rights are revenues and by dividends and expenses. 3. Determine the net income for April $ 4. How much did April's transactions increase or decrease stockholders' equity? by $ Footback Check My Work 1. Review Transactions (a) to (h) summarized on Exhibit 5 in the text. Recall that the effect of every transaction must modify the accounting equation, yet cause it to remain in balance overall 2. Stockholders' equity represents the rights of stockholders. Additional Investments and revenues increase the rights of the stockholder. When the stockholder removes funds (a dividend) and pays expenses, the stockholders' equity decreases. 3. Net income is the excess of revenues over expenses. 4. Beginning Retained earnings + Net Income - Dividends - Ending Retained earnings. Check My Work Previous Next > All work saved Save and Exit Submit Assignment for Grading 14 4) h W G