On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June: a. Opened a business bank account with a deposit of $26,000 from personal funds. b. Purchased office supplies on account, $2,490. c. Received cash from fees earned for managing rental property, $6,730. d. Paid rent on office and equipment for the month, $3,050. e. Paid creditors on account, $1,130. f. Billed customers for fees earned for managing rental property, $5,650. g. Paid automobile expenses (including rental charges) for the month, $680, and miscellaneous expenses, $340. h. Paid office salaries, $2,150. 1. Determined that the cost of supplies on hand was $1,470; therefore, the cost of supplies used was $1,020. j. Withdrew cash for personal use, $2,030. Required: 1. Indicate the effect of each transaction and the balances after each transaction: For those boxes in which no entry is required, leave the box blank. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: 300 ) 2. Owner's equity is the right of owners to the assets of the business, These rights are and by owner's withdrawals and expenses. 3. Determine the net income for June. x 4. June's transactions (aj) increased or decreased Chad wilson's capital to? Vto$x Feedback - check My Work 1. Review Transactions (a) to (h) summarized on page is in the text. Recail that the efflect of every transacton must modify the accounting oquation, yet cause is to remain in balance overall. 2. Owners equity represents the rights of ownors. Additional investments and revenues increase the nights of the owner. When the owner removes funds (a withdrawal) and pays expenses, the owner's equity decreases. 3. Not income is the excess of tevenues over expenses. 4. Beginning Owner's Equity + invosiments - Wiedrawals + Revenue - Expenses = Ending Ownor's Equity