Obj. $4$

On June $1$ of the current year, Chris Bates established a business to manage rental

property. The following transactions were completed during June:

a$.$ Opened a business bank account with a deposit of $$75,000$ in exchange for common

stock.

b$.$ Purchased office supplies on account, $$2,200.$

c$.$ Received cash from fees earned for managing rental property, $$19,500.$

d$.$ Paid rent on office and equipment for the month, $$8,000.$

e$.$ Paid creditors on account, $$1,850.$

f$.$ Billed customers for fees earned for managing rental property, $$6,000.$

g$.$ Paid automobile expenses for month, $$1,500,$ and miscellaneous expenses, $$800.$

h$.$ Paid office salaries, $$5,500.$

i$.$ Determined that the cost of supplies on hand was $$550$; therefore, the cost of

supplies used was $$1,650.$

j$.$ Paid dividends, $$4,000.$

INSTRUCTIONS

Indicate the effect of each transaction and the balances after each $2.$ Briefly explain why issuing common stock and revenues increased

stockholders' equity, while dividends and expenses decreased stockholders'

equity.

Determine the net income for June.

How much did June's transactions increase or decrease stockholders' equity?