On June 1 of the current year, Chad Wilson established a business to manage rental property He completed the following transactions during June On June 1 of the current year, Chad Wilson established a business to manage rental property He completed the following transactions during June Opened a business bank account with a deposit of $30,000 from personal funds Purchased office supplies on account, $1,800 Received cash from fees earned for managing rental property, $10,000 Paid rent on office and equipment for the month, $4,500 Paid creditors on account, $1,250 Billed customers for fees earned for managing rental property, $16,800 Paid automobile expenses (including rental charges) for the month, $750, and miscellaneous expenses, $980 Paid office salaries, $4,000 Determined that the cost of supplies on hand was $680 therefore, the cost of supplies used was $1,120 Withdrew cash for personal use, $7,500 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)

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 30, 2024

On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June: On June

On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June:

Opened a business bank account with a deposit of $30,000 from personal funds.
Purchased office supplies on account, $1,800.
Received cash from fees earned for managing rental property, $10,000.
Paid rent on office and equipment for the month, $4,500.
Paid creditors on account, $1,250.
Billed customers for fees earned for managing rental property, $16,800.
Paid automobile expenses (including rental charges) for the month, $750, and miscellaneous expenses, $980.
Paid office salaries, $4,000.
Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120.
Withdrew cash for personal use, $7,500.

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)