Make one substantive response on this accounting transactions and their respective interpretations.

A proprietor by the name of Chad Wilson, started a rental property business and during the month of June, he completed the following the transactions:

a. The owner opened a business and deposited $30,000 from his personal funds.

The keywords: Business and deposited.

Since the accounts have been given to you in the accounting equation, which is Assets = Liabilities + Owner's Equity, you are to ensure that the left-side equals the right-side.

It is also possible that you may stay on one-side of the accounting equation. By staying on one-side of the accounting equation, one entry must be a positive and the other number a negative.

In identifying the accounts, in this transaction, we selected 'deposited', which is an asset. Since the money is coming to the business, the cash account of the business will increase by $30,000. The corresponding entry will be $30,000 in Chad Wilson, Capital.

b. The business purchased office supplies on account, $1,800.

Keywords are Supplies and on account.

Interpretation: Supplies = Asset = Coming to the business = Asset increases = Debit

On account = Accounts payable = Liability = Credit

Thus, insert $1,800 under Supplies, and insert another $1,800 under Accounts Payable.

c. Received cash from fees earned for managing rental property, $10,000.

Interpretation:

Cash = Asset = coming to the business = Increase = Debit

Fees earned = equity = Increase = Credit.

Place $10,000 under Supplies and another $10,000 under Fees earned

d. Paid rent on office and equipment for the month, $4,500.

Keywords:

Paid = Cash = Asset = Decrease = Credit

Office and equipment = Asset = Increase = Debit

Place -$4,500 under Cash, and $4,500 under Office and equipment

e. Paid creditors on account, $1,250.

Interpretation:

Paid = Cash = Asset = Decrease = Credit

Creditor on account = Liability = Decrease = Debit

Place -$1,250 under cash and place -$1,250 under accounts payable

f. Billed customers for fees earned for managing rental property, $16,800.

Interpretation:

Billed = Accounts receivable = Asset = Increase = Debit

Fees earned = Equity = Increase = Credit

Place $16,800 under accounts receivable, and place another $16,800 under Fees earned.

g. Paid automobile expenses (including rental charges) for the month, $750, and miscellaneous expenses, $980.

In this transactions, we have multiple entries. These entries are: (1) Cash, (2) Auto expense, and (3) Miscellaneous expense.

Interpretation:

Paid = Cash = Asset = Decrease = Credit

Auto expense = Equity = Decrease = Debit

Miscellaneous expense = Equity = Decrease = Debit

Interpretation:

Place -$1,730 = ($750 + $980) under Cash, -$750 under Auto expense, and $980 under Miscellaneous expenses.

h. Paid office salaries, $4,000.

Interpretation:

Paid = Cash = Asset = Decrease = Credit

Office salaries = Equity = Decrease = Debit

Place -$4,000 under Cash, another -$4,000 under Office Salaries expense

i. Determined that the cost of supplies on hand was $1,120; therefore, the cost of supplies used was $1,120.

Interpretation:

Supplies used = Expense = Equity = Debit

Supplies = Asset = Decrease = Credit

Place -$1,120 under Supplies, and another -$1,120 under Supplies Expense

j. Withdrew cash for personal use, $7,500

Interpretation:

Withdrew cash = Asset = Decrease = Credit

Withdrew = Equity = Decrease = Debit

Place -$7,500 under Cash, another -$7,500 under Chad Wilson, Drawing