1. Transactions; Financial reports that summarize the effects of events on a business.Financial Statements

   On April 1, 2018, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April:

   1. Opened a An organization in which basic resources (inputs), such as materials and labor, are assembled and processed to provide goods or services (outputs) to customers.business bank account with a deposit of $24,000 in exchange for common stock.
   2. Paid rent on office and equipment for the month, $3,600.
   3. Paid automobile expenses for month, $1,350, and miscellaneous expenses, $600.
   4. Purchased supplies on account, $1,200.
   5. Earned sales commissions, receiving cash, $19,800.
   6. Paid creditor on account, $750.
   7. Paid office salaries, $2,500.
   8. Paid dividends, $3,500.
   9. Determined that the cost of supplies on hand was $300; therefore, the cost of supplies used was $900.

   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. If required, enter negative values as negative numbers using a minus sign.

   Assets

   =

   Liabilities +

   Stockholders' Equity

   Cash

   +

   Supplies

   =

   Accounts Payable

   +

   Common Stock

   -

   Dividends

   +

   Sales Commissions

   -

   Rent Expense

   -

   Salaries Expense

   -

   Auto Expense

   -

   Supplies Expense

   -

   Miscellaneous Expense

   a.

   b.

   Bal.

   c.

   Bal.

   d.

   Bal.

   e.

   Bal.

   f.

   Bal.

   g.

   Bal.

   h.

   Bal.

   i.

   Bal.

   2. Prepare an A summary of the revenue and expenses for a specific period of time, such as a month or a year.income statement for April. If a net loss is incurred, enter that amount as a negative number using a minus sign.

   Custom Realty
   Income Statement
   For the Month Ended April 30, 2018
   Accounts payable Cash Investment by stockholder Retained earnings Sales commissions Supplies		$
   Expenses:
   Accounts payable Common stock Rent expense Retained earnings Sales commissions Supplies	$
   Accounts payable Common stock Cash Salaries expense Sales commissions Supplies
   Accounts payable Automobile expense Common stock Cash Retained earnings Supplies
   Accounts payable Cash Retained earnings Sales commissions Supplies Supplies expense
   Accounts payable Common stock Cash Miscellaneous expense Retained earnings Sales commissions
   Total expenses
   Net income Net loss		$

   Prepare a A summary of the changes in the retained earnings of a corporation for a specific period of time, such as a month or a year.retained earnings statement for April. If an amount is zero, enter "0". If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign.

   Custom Realty
   Retained Earnings Statement
   For the Month Ended April 30, 2018
   Cash Dividends Investment on April 1, 2018 Retained earnings, April 1, 2018 Retained earnings, April 30, 2018		$
   Accounts receivable Cash Net income Retained earnings, April 1, 2018 Retained earnings, April 30, 2018	$
   Cash Dividends Investment on April 1, 2018 Retained earnings, April 1, 2018 Sales commissions
   Cash Dividends Investment on April 1, 2018 Retained earnings, April 1, 2018 Change in retained earnings
   Cash Dividends Investment on April 1, 2018 Retained earnings, April 1, 2018 Retained earnings, April 30, 2018		$

   Prepare a A list of the assets, liabilities, and stockholders' equity as of a specific date, usually at the close of the last day of a month or a year.balance sheet as of April 30.

   Custom Realty
   Balance Sheet
   April 30, 2018
   Assets
   Accounts payable Common stock Cash Rent expense Salaries expense Sales commissions		$
   Accounts payable Common stock Miscellaneous expense Retained earnings Supplies Supplies expense
   Total assets		$
   Liabilities
   Accounts payable Common stock Cash Miscellaneous expense Retained earnings Sales commissions		$
   Stockholders' Equity
   Accounts payable Automobile expense Common stock Cash Rent expense	$
   Accounts payable Automobile expense Cash Rent expense Retained earnings
   Total stockholders' equity
   Total liabilities and stockholders' equity		$

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