On 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, Capita