Question
n August 1, 2018, Brooke Kline established Western Realty. Brooke completed the following transactions during the month of August: Opened a business bank account with
n August 1, 2018, Brooke Kline established Western Realty. Brooke completed the following transactions during the month of August:
- Opened a business bank account with a deposit of $22,000 in exchange for common stock.
- Purchased supplies on account, $2,250.
- Paid creditor on account, $1,430.
- Earned sales commissions, receiving cash, $22,990.
- Paid rent on office and equipment for the month, $4,510.
- Paid dividends, $7,000.
- Paid automobile expenses for month, $2,160, and miscellaneous expenses, $1,030.
- Paid office salaries, $2,710.
- Determined that the cost of supplies on hand was $760; therefore, the cost of supplies used was $1,490.
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. If required, enter negative values as negative numbers using a minus sign.
| Assets | = | Liabilities + | Stockholders' Equity | ||||||||||||||||||||
| Cash | + | Supplies | = | Accounts Payable | + | Common Stock | - | Dividends | + | Sales Commissions | - | Rent Expense | - | Salaries Expense | - | Auto Expense | - | Supplies Expense | - | Miscellaneous Expense | |||
| a. | fill in the blank 1146f8fec05efec_7 | fill in the blank 1146f8fec05efec_8 | fill in the blank 1146f8fec05efec_9 | fill in the blank 1146f8fec05efec_10 | fill in the blank 1146f8fec05efec_11 | ||||||||||||||||||
| b. | fill in the blank 1146f8fec05efec_18 | fill in the blank 1146f8fec05efec_19 | fill in the blank 1146f8fec05efec_20 | fill in the blank 1146f8fec05efec_21 | fill in the blank 1146f8fec05efec_22 | ||||||||||||||||||
| Bal. | fill in the blank 1146f8fec05efec_29 | fill in the blank 1146f8fec05efec_30 | fill in the blank 1146f8fec05efec_31 | fill in the blank 1146f8fec05efec_32 | fill in the blank 1146f8fec05efec_33 | ||||||||||||||||||
| c. | fill in the blank 1146f8fec05efec_40 | fill in the blank 1146f8fec05efec_41 | fill in the blank 1146f8fec05efec_42 | fill in the blank 1146f8fec05efec_43 | fill in the blank 1146f8fec05efec_44 | ||||||||||||||||||
| Bal. | fill in the blank 1146f8fec05efec_51 | fill in the blank 1146f8fec05efec_52 | fill in the blank 1146f8fec05efec_53 | fill in the blank 1146f8fec05efec_54 | fill in the blank 1146f8fec05efec_55 | ||||||||||||||||||
| d. | fill in the blank 1146f8fec05efec_62 | fill in the blank 1146f8fec05efec_63 | fill in the blank 1146f8fec05efec_64 | fill in the blank 1146f8fec05efec_65 | fill in the blank 1146f8fec05efec_66 | ||||||||||||||||||
| Bal. | fill in the blank 1146f8fec05efec_73 | fill in the blank 1146f8fec05efec_74 | fill in the blank 1146f8fec05efec_75 | fill in the blank 1146f8fec05efec_76 | fill in the blank 1146f8fec05efec_77 | ||||||||||||||||||
| e. | fill in the blank 1146f8fec05efec_84 | fill in the blank 1146f8fec05efec_85 | fill in the blank 1146f8fec05efec_86 | fill in the blank 1146f8fec05efec_87 | fill in the blank 1146f8fec05efec_88 | ||||||||||||||||||
| Bal. | fill in the blank 1146f8fec05efec_89 | fill in the blank 1146f8fec05efec_90 | fill in the blank 1146f8fec05efec_91 | fill in the blank 1146f8fec05efec_92 | fill in the blank 1146f8fec05efec_93 | fill in the blank 1146f8fec05efec_94 | fill in the blank 1146f8fec05efec_95 | fill in the blank 1146f8fec05efec_96 | fill in the blank 1146f8fec05efec_97 | fill in the blank 1146f8fec05efec_98 | fill in the blank 1146f8fec05efec_99 | ||||||||||||
2. Prepare an income statement for August.
| Western Realty | ||
| Income Statement | ||
| For the Month Ended August 31, 2018 | ||
| $fill in the blank e641bdf8cf97015_2 | ||
| Expenses: | ||
| fill in the blank e641bdf8cf97015_4 | ||
| $fill in the blank e641bdf8cf97015_6 | ||
| fill in the blank e641bdf8cf97015_8 | ||
| fill in the blank e641bdf8cf97015_10 | ||
| fill in the blank e641bdf8cf97015_12 | ||
| Total expenses | fill in the blank e641bdf8cf97015_13 | |
| $fill in the blank e641bdf8cf97015_15 | ||
Prepare a retained earnings statement for August. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign.
| Western Realty | ||
| Retained Earnings Statement | ||
| For the Month Ended August 31, 2018 | ||
| $fill in the blank 43ecd108bfc903e_2 | ||
| $fill in the blank 43ecd108bfc903e_4 | ||
| fill in the blank 43ecd108bfc903e_6 | ||
| fill in the blank 43ecd108bfc903e_8 | ||
| $fill in the blank 43ecd108bfc903e_10 | ||
Prepare a balance sheet as of August 31.
| Western Realty | ||
| Balance Sheet | ||
| August 31, 2018 | ||
| Assets | ||
| $fill in the blank 7ce928f99ff9045_2 | ||
| fill in the blank 7ce928f99ff9045_4 | ||
| Total assets | $fill in the blank 7ce928f99ff9045_5 | |
| Liabilities | ||
| $fill in the blank 7ce928f99ff9045_7 | ||
| Stockholders' Equity | ||
| $fill in the blank 7ce928f99ff9045_9 | ||
| fill in the blank 7ce928f99ff9045_11 | ||
| Total stockholders' equity | fill in the blank 7ce928f99ff9045_12 | |
| Total liabilities and stockholders' equity | $fill in the blank 7ce928f99ff9045_13 | |
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
15th edition
978-0077522940
