1. On April 1 of the current year, Morgan Jones established a business to manage rental property. She completed the following transactions during April:
2. Opened abusinessbank account with a deposit of $39,000 in exchange for common stock.
3. Purchased office supplies on account, $2,720.
4. Received cash fromfees earnedfor managing rental property, $7,540.
5. Paid rent on office and equipment for the month, $3,340.
6. Paid creditors on account, $1,240.
7. Billed customers for fees earned for managing rental property, $6,180.
8. Paid automobileexpensesfor month, $740, and miscellaneous expenses, $370.
9. Paid office salaries, $2,350.
10. Determined that the cost of supplies on hand was $1,610; therefore, the cost of supplies used was $1,110.
11. Paid dividends, $2,220.
12. Required:
13. 1.Indicate the effect of each transaction and the balances after each transaction:
14. For those boxes in which no entry is required, leave the box blank.
15. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300)
16. Assets=Liabilities+Stockholders' EquityItemCash+Accounts Receivable+Supplies=Accounts Payable+Common Stock-Dividends+Fees Earned-Rent Expense-Sal. Expense-Supp. Expense-Auto Expense-Misc. ExpenseItema.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.
17. 2.Stockholders' equity is the right of stockholders (owners) to the assets of the business. These rights are
19. by issuing common stock and revenues and
21. by dividends and expenses.
22. 3.Determine thenet incomefor April.
23. $
24. 4.How much did April's transactions increase or decrease stockholders' equity?
27. by$