On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July.

A.	Opened a business bank account with a deposit of $25,000 from personal funds.
B.	Paid rent on office and equipment for the month, $2,800.
C.	Paid automobile expenses (including rental charge) for the month, $1,500, and miscellaneous expenses, $700.
D.	Purchased office supplies on account, $1,150.
E.	Earned sales commissions, receiving cash, $21,000.
F.	Paid creditor on account, $850.
G.	Paid office salaries, $3,100.
H.	Withdrew cash for personal use, $3,200.
I.	Determined that the cost of supplies on hand was $450; therefore, the cost of supplies used was $700.

Required:

1.Indicate the effect of each transaction and the balances after each transaction, using the tabular headings in the exhibit below. In each transaction row (rows indicated by a letter), you must indicate the math sign (+ or -) in columns affected by the transaction. You will not need to enter math signs in the balance rows (rows indicated by Bal.). Entries of 0 (zero) are not required and will be cleared if entered.

Assets= Liabilities +Owners Equity

PatPat

AccountsGlenn,Glenn,SalesSalariesRentAutoSuppliesMiscellaneous

Cash+ Supplies= Payable+ Capital- Drawing+ Commissions- Expense- Expense- Expense- Expense- Expense

2. Prepare an income statement for July, a statement of owners equity for July, a balance sheet as of July 31. Refer to the list of Accounts on the accounting equation grid and the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss has been incurred, enter that amount as a negative number using a minus sign. You will not need to enter colons (:) on the statements.

Labels
Expenses
For the Month Ended July 31, 2019
July 31, 2019
Amount Descriptions
Decrease in owners equity
Increase in owners equity
Investment on July 1, 2019
Withdrawals
Net income
Net income for July
Net loss
Net loss for July
Pat Glenn, capital, July 1, 2019
Pat Glenn, capital, July 31, 2019
Plus withdrawals
Total assets
Total expenses
Total liabilities and owners equity

1. Indicate the effect of each transaction and the balances after each transaction, using the tabular headings. In each transaction row (rows indicated by a letter), you must indicate the math sign (+ or -) in columns affected by the transaction. You will not need to enter math signs in the balance rows (rows indicated by Bal.). Entries of 0 (zero) are not required and will be cleared if entered.

Assets= Liabilities +Owners Equity

PatPat

AccountsGlenn,Glenn,SalesSalariesRentAutoSuppliesMiscellaneous

Cash+ Supplies= Payable+ Capital- Drawing+ Commissions- Expense- Expense- Expense- Expense- Expense

a.

b.

Bal.

c.

Bal.

d.

Bal.

e.

Bal.

f.

Bal.

g.

Bal.

h.

Bal.

i.

Bal.

2. Prepare an income statement for July 31. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Refer to the list of Accounts on the accounting equation grid and the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. You will not need to enter colons (:) on the income statement.

Half Moon Realty

Income Statement

(LABEL)

1

2 (label)

3

4

5

6

7

8

9

2. Prepare a statement of owners equity for the month ended July 31, 2016. If a net loss has been incurred or there has been a decrease in owners equity, enter that amount as a negative number using a minus sign. Refer to the list of Accounts on the accounting equation grid and the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.

Half Moon Realty

Statement of Owners Equity

(LABEL)

1

2

3

4

5

6

7

2. Prepare a balance sheet as of July 31, 2016. Refer to the list of Accounts on the accounting equation grid and the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.

Half Moon Realty

Balance Sheet

(LABEL)

1 Assets

2

3

4

5 Liabilities

6

7 Owners equity

8

9