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On August 1, 2049, Brooke Kline established Western Realty Brooke completed the following transactions during the month of August a. Opened a business bank account with a deposit of $20,000 in exchange for common stock b. Purchased office supplies on account, $1,850 C. Paid creditor on account. $1,150. d. Earned sales commissions, receiving cash, $43,000 e. Paid rent on office and equipment for the month, $2,900 > f Paid dividends $3,100 g. Paid automobile expenses for month, $3.000, and miscellaneous expenses, $1,800 h. Paid office salaries, $3.900 i Determined that the cost of supplies on hand was $850, therefore, the cost of supplies used was $1,000. 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 Stockholders' Equity rom, 178 ng m the exhibit below m 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 il entered Assets = Liabilities Stockholders' Equity Accounts Common Sales Salaries Rent Auto Supplies Miscellaneous Cash + Supplies = Payable + Stock Dividends + Commissions Expense Expense Expense Expense Expense 2. a. Prepare an income statement for August. Refer to the list of Accounts, 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. If a net loss has been incurred enter that amount as a negative number using a minus sign 2 b. Prepare a statement of stockholders' equity for August Refer to the list of Accounts, 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 is incurred or dividends were paid, enter that amount as a negative number using a minus sign If an amount is zero, enter "0". 2 c Prepare a balance sheet as of August 31. Refer to the list of Accounts, Labels and Amount Descriptions for the exact wording of the answer choices for text entnes. Be sure to complete the statement heading eBook 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 in Assets = Liabilities + Accounts Common Cash + Supplies = Payable + Stock - Dividends . b Bal C Bal d Bal. e Bal f Bal g Bal h Bal 1 Bal Check My Work 4 Auto expense 3,000.00 5 Miscellaneous expense 1,800.00 6 Salaries expense 3,900.00 7 Supplies expense 1,000.00 8 Total expenses 9,700.00 9 Net income $33,300.00 Statement of Stockholders' Equity Check My Work Statement of Stockholders' Equity 2b. Prepare a statement of stockholders' equity for August Refer to the list of Accounts, 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 is incurred or dividends were paid, enter that amount as a negative number using a minus sign If an amount is zero enter "0" Western Really Statement of Stockholders' Equity (Label) > Retained Common Stock Total Earnings 2 Balances, August 1, 2049 $20,000.00 $0.00 $20,000.00 1 Net income 0.00 33,300,00 33,300.00 4 Dividends (3,100.00) (3,100,00) 5 Balances, August 31, 2049 20,000.00 29,900,00 24,300.00 Balance Sheet 2. c. Prepare a balance sheet as of August 31. Refer to the list of Accounts, Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Western Realty Balance Sheet (Label) 1 Assets 2 Cash 3 Supplies 850.00 4 Total assets 5 Liabilities 6 Accounts payable 7 Stockholders' Equity 8 Common stock 9 Retained earings 10 Total stockholders' equity 11 Total liabilities and stockholders' equity