Question
eBook Show Me How Transactions On April 1 of the current year, Morgan Jones established a business to manage rental property. She completed the following
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Show Me How
Transactions
On April 1 of the current year, Morgan Jones established a business to manage rental property. She completed the following transactions during April:
- Opened a business bank account with a deposit of $60,000 in exchange for common stock.
- Purchased office supplies on account, $1,800.
- Received cash from fees earned for managing rental property, $22,300.
- Paid rent on office and equipment for the month, $7,000.
- Paid creditors on account, $1,100.
- Billed customers for fees earned for managing rental property, $3,600.
- Paid automobile expenses for month, $750, and miscellaneous expenses, $1,000.
- Paid office salaries, $4,000.
- Determined that the cost of supplies on hand was $250; therefore, the cost of supplies used was $1,550.
- Paid dividends, $5,000.
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 + Stockholders' Equity Item Cash + Accounts Receivable + Supplies = Accounts Payable + Common Stock - Dividends + Fees Earned - Rent Expense - Sal. Expense - Supp. Expense - Auto Expense - Misc. Expense Item a. ------- --------- --------- ---------- --------- --------- ---------- ---------- ---------- ---------- --------- -------- a. b. ------- ---------- ----------- ---------- --------- ----------- -------- -------- ---------- ---------- --------- -------- b. Bal. ------ ---------- ---------- ----------- ----------- ---------- -------- ---------- ---------- ---------- ---------- ---------- Bal. c. ------- ------------- -------- ---------- ---------- ----------- ---------- ---------- ---------- ----------- --------- ---------- c. Bal. ------ --------- ----------- ----------- ---------- ---------- ---------- ----------- ----------- ---------- --------- ----------- Bal. d. ------ ---------- ---------- ------------ ---------- ------------ ---------- ----------- ---------- ------------ ----------- ----------- d. Bal. ----- ------------ --------- ---------- ---------- ----------- ---------- ---------- --------- ----------- ------------ --------- Bal. e. ------ ------------- ---------- ------------ ------------ ----------- --------- ------------ ------------ --------- ----------- ---------- e. Bal. ------ ---------- ----------- ------------ ---------- ---------- ------- --------- ---------- ----------- --------- ---------- Bal. f. ------- ---------- ------------ ----------- ------------ ---------- -------- ---------- ----------- ------------ ---------- --------- f. Bal. ------- ----------- ---------- -------- --------- ---------- --------- --------- ------- ---------- --------- ----------- Bal. g. ------- ----------- ----------- ---------- --------- ---------- --------- ---------- --------- --------- ---------- -------- g. Bal. ------- --------- ---------- ----------- ---------- ----------- --------- --------- ---------- ---------- ---------- ---------- Bal. h. ------- ---------- --------- ---------- ---------- --------- --------- ----------- ---------- ----------- --------- ----------- h. Bal. ------- ------------ ----------- --------- ---------- ---------- --------- ---------- --------- ---------- ---------- -------- Bal. i. ------- ------------ ----------- ----------- ---------- ---------- ---------- ----------- ------------ ------------ ----------- ----------- i. Bal. ------- ------- ---------- ---------- ---------- ------- -------- ------- ------- --------- --------- -------- Bal. j. ------- ----------- --------- --------- ---------- --------- -------- -------- --------- ----------- ----------- ------ j. Bal. ------- -------- ------- ---------- ------------- ----------- --------- ---------- ---------- ------------ --------- ----------- Bal. 2. Stockholders equity is the right of stockholders (owners) to the assets of the business. These rights are ---------------- by issuing common stock and revenues and------------- by dividends and expenses.
3. Determine the net income for April. $------------
4. How much did Aprils transactions increase or decrease stockholders equity? by $--------
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Intermediate Accounting Volume 2
Authors: Hanlon, Hodder, Nelson, Roulstone, Dragoo
2nd Edition
1618533134, 9781618533357
