July 1, 2006, Beth Nesbit established Patriotic Realty. Nesbit completed the following transactions during the month of July:

a. Opened a business bank account with a deposit of $18,000 from personal funds.

b. Purchased supplies (pens, file folders, fax paper, etc.) on account, $1,650.

c. Paid creditor on account, $1,100.

d. Earned sales commissions, receiving cash, $25,200.

e. Paid rent on office and equipment for the month, $7,200.

f. Withdrew cash for personal use, $10,000.

g. Paid automobile expenses (including rental charge) for month, $1,500, and miscellaneous expenses, $750.

h. Paid office salaries, $8,000.

i. Determined that the cost of supplies on hand was $600; therefore, the cost of supplies used was $1,050.

Instructions

1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:

Assets = Liabilities + Owner's Equity

Cash + Supplies = Accounts Payable +Beth Nesbit, Capital

Explain the nature of each increase and decrease in owner's equity by an appropriate notation at the right of the amount. July 1, 2006, Beth Nesbit established Patriotic Realty. Nesbit completed the following transactions during the month of July:

a. Opened a business bank account with a deposit of $18,000 from personal funds.

b. Purchased supplies (pens, file folders, fax paper, etc.) on account, $1,650.

c. Paid creditor on account, $1,100.

d. Earned sales commissions, receiving cash, $25,200.

e. Paid rent on office and equipment for the month, $7,200.

f. Withdrew cash for personal use, $10,000.

g. Paid automobile expenses (including rental charge) for month, $1,500, and miscellaneous expenses, $750.

h. Paid office salaries, $8,000.

i. Determined that the cost of supplies on hand was $600; therefore, the cost of supplies used was $1,050.

Instructions

1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:

Assets = Liabilities + Owner's Equity

Cash + Supplies = Accounts Payable +Beth Nesbit, Capital

Explain the nature of each increase and decrease in owner's equity by an appropriate notation at the right of the amount.