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 $32,000 in exchange for common stock.
2. Purchased supplies on account, $3,260.
3. Paid creditor on account, $2,060.
4. Earned sales commissions, receiving cash, $33,220.
5. Paid rent on office and equipment for the month, $6,510.
6. Paid dividends, $10,000.
7. Paid automobile expenses for month, $3,120, and miscellaneous expenses, $1,490.
8. Paid office salaries, $3,920.
9. Determined that the cost of supplies on hand was $1,100; therefore, the cost of supplies used was $2,160.

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 income statement for April.

Custom Realty
Income Statement
For the Month Ended April 30, 20Y8
		$
Expenses:
	$
Total expenses
		$

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, 20Y8
	Common Stock	Retained Earnings	Total
	$	$	$

Prepare a balance sheet as of April 30.

Custom Realty
Balance Sheet
April 30, 20Y8
Assets
		$
Total assets		$
Liabilities
		$
Stockholders' Equity
	$
Total stockholders' equity
Total liabilities and stockholders' equity		$