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

Opened a business bank account with a deposit of $42,000 from personal funds.

Purchased office supplies on account, $2,110.

Received cash from fees earned for managing rental property, $5,710.

Paid rent on office and equipment for the month, $2,590.

Paid creditors on account $960.

Billed customers for fees earned for managing rental property, $4,800.

Paid automobile expenses (including rental charges) for the month, $580, and miscellaneous expenses, $290.

Paid office salaries, $1,820.

Determined that the cost of supplies on hand was $1,250; therefore, the cost of supplies used was $860.

Withdrew cash for personal use, $1,730.

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 by the owner's investments and revenues and by the owner's withdrawals and expenses.

3. Determine the net income for June.

4. June's transactions (a-j) increased or decreased Pamela Schatz's capital to?

.

5. Missing Amounts from Financial Statements

The financial statements at the end of Wolverine Realty's first month of operations are as follows:

Required:

Analyze the interrelationships among the four financial statements and enter the missing amounts. If an amount is zero, enter "0".

Wolverine Realty Income Statement For the Month Ended April 30, 20Y3

Fees earned		$fill in the blank 797edb07dff005c_1(a)
Expenses:
Wages expense	$44,300
Rent expense	20,050
Supplies expense	fill in the blank 797edb07dff005c_2(b)
Utility expense	11,230
Miscellaneous expense	6,820
Total expenses		99,040
Net income		$112,060

Wolverine Realty Statement of Owner's Equity For the Month Ended April 30, 20Y3

Dakota Rowe, capital, April 1, 20Y3		$(c)
Investment on April 1, 2016	$404,000
Net income for April	(d)
Withdrawals	(44,400)
Increase in owner's equity		(e)
Dakota Rowe, capital, April 30, 20Y3		$(f)

^{Wolverine Realty Balance Sheet May 31, 20Y3} Assets

Cash	$150,560
Supplies	8,870
Land	323,000
Total assets	$(g)
Liabilities
Accounts payable	$10,770
Owners Equity
Dakota Rowe, capital	(h)
Total liabilities and owners equity	$ (i)

Use the minus sign to indicate cash outflows, decreases in cash, and cash payments.

Wolverine Realty Statement of Cash Flows For the Month Ended April 30, 20Y3

Cash flows from (used for) operating activities:
Cash received from customers	$(j)
Cash paid for operating expenses and to creditors	(97,140)

Net cash flow from operating activities	$(k)
Cash flows from (used for) investing activities:
Cash paid for acquisition of land	(l)
Cash flows from (used for) financing activities:
Cash received from the owner as an investment	$(m)
Cash withdrawals by the owner	(n)
Net cash flow from financing activities	(o)
Net increase (decrease) in cash	$(p)
Cash balance, April 1, 20Y3	0
Cash balance, April 30, 20Y3	$(q)

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