Transactions; Financial Statements

On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April:

1. Opened a business bank account with a deposit of $20,000 in exchange for common stock.
2. Purchased supplies on account, $2,010.
3. Paid creditor on account, $1,270.
4. Earned sales commissions, receiving cash, $20,520.
5. Paid rent on office and equipment for the month, $4,020.
6. Paid dividends, $6,000.
7. Paid automobile expenses for month, $1,930, and miscellaneous expenses, $920.
8. Paid office salaries, $2,420.
9. Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,330.

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 + Common Stockholders' Equity Sales Salaries - Rent Expense- Commissions Expense Cash + Supplies = Accounts Payable Dividends + Auto Expense Supplies Expense Miscellaneous Expense a. 20,000 20,000 2,010 2,010 2,010 2,010 20,000 20,000 1,270 18,730 1,270 Bal. 2,010 20,000 2,010 20,000 2,010 20,000 6,000 2,010 20,000 6,000 2,010 20,000 6,000 20,000 6,000 20,000 6,000 2. Prepare an income statement for April. Custom Realty Income Statement For the Month Ended April 30, 2018 Supplies expense Expenses: Sales commissions Rent expense Automobile expense Sales commissions Supplies Total expenses Net income Prepare a statement of stockholders' equity for April. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Custom Realty Statement of Stockholders' Equity For the Month Ended April 30, 2048 Common Stock Retained Earnings Total Prepare a balance sheet as of April 30. Custom Realty Balance Sheet April 30, 2018 Assets | QUI O Total assets Liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity Assets = Liabilities + Common Stockholders' Equity Sales Salaries - Rent Expense- Commissions Expense Cash + Supplies = Accounts Payable Dividends + Auto Expense Supplies Expense Miscellaneous Expense a. 20,000 20,000 2,010 2,010 2,010 2,010 20,000 20,000 1,270 18,730 1,270 Bal. 2,010 20,000 2,010 20,000 2,010 20,000 6,000 2,010 20,000 6,000 2,010 20,000 6,000 20,000 6,000 20,000 6,000 2. Prepare an income statement for April. Custom Realty Income Statement For the Month Ended April 30, 2018 Supplies expense Expenses: Sales commissions Rent expense Automobile expense Sales commissions Supplies Total expenses Net income Prepare a statement of stockholders' equity for April. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Custom Realty Statement of Stockholders' Equity For the Month Ended April 30, 2048 Common Stock Retained Earnings Total Prepare a balance sheet as of April 30. Custom Realty Balance Sheet April 30, 2018 Assets | QUI O Total assets Liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity