On June 1 of the current year, Maria Edsall established a business to manage rental property. She completed the following transactions during June:

Opened a business bank account with a deposit of $32,000 in exchange for capital stock.

Purchased office supplies on account, $2,910.

Received cash from fees earned for managing rental property, $8,280.

Paid rent on office and equipment for the month, $3,570.

Paid creditors on account, $1,320.

Billed customers for fees earned for managing rental property, $6,620.

Paid automobile expenses (including rental charges) for month, $790, and miscellaneous expenses, $400.

Paid office salaries, $2,520.

Determined that the cost of supplies on hand was $1,720; therefore, the cost of supplies used was $1,190.

Paid dividends $2,380.

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)

Assets

=

Liabilities

+

Stockholders' Equity

Item

Cash

+

Accounts Receivable

+

Supplies

=

Accounts Payable

+

Capital Stock

-

Dividends

+

Fees Earned

-

Rent Expense

-

Sal. Expense

-

Supp. Expense

-

Auto Expense

-

Misc. Expense

Item

a.

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.

2. Stockholders' equity is the right of stockholders' to the assets of the business. These rights are increased by issuances of capital stock and revenues and decreased by dividends and expenses.

3. Determine the net income for June. $

4. How much did June's transactions (a-j) increase or decrease retained earnings?

Increased by $