Transactions; Financial Statements On July 1, 2017, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July a. Opened a business bank account with a deposit of $31,000 from personal funds. b. Purchased office supplies on account, 53,140 c. Paid creditor on account, $1,990, d. Earned sales commissions, receiving cash, $32,080. e. Paid rent on office and equipment for the month, $6,290. f. Withdrew cash for personal use, $10,000 g. Paid automobile expenses (including rental charge) for the month, $3,020, and miscellaneous expenses, 51,440. h. Paid office salanes, 53,790 i. Determined that the cost of supplies on hand was $1,060; therefore, the cost of supplies used was $2,080. 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 Liabilities Owner's Equity Cast Chapter 01 Homework Content Area Accounts Pat Glenn Pat Glenn Sales + Rent Office Salaries Payable Capital Drawing Commissions Expense Expense W,00 / 31,000 b 3,140 3,1407 31,000 3,1407 3,140 31,000 3,140 X 3,140 X Bal 29,010 3,140 1,150 31,000 d. 32,080 32,080 d. 32,080 32,080 Bal 61,090 3,140 1,150 31,000 32,080 e 6,290 X 6,290 X Bal 3,140 1,150 31,000 54,800 10,000 X 32,0807 6,290 X Bal 10,000 x 10,000 X 3,140 1,150 44,8007 4,460 X 31,000 32,0807 9 6,290 X 3,020 X 9,310 x 3,140 1,150 31,000 40,3407 3,790 X 10,000 X 32,0807 h. 3,790 X Bal. 36,5507 3,1407 1,150 31,000 10,000 X 2018) 9,310 x 3,790 X 2,080 X Bal 36,5507 1,0607 1,150 31,000 10,000 X 32,080 9,310 X 3,790 X Feedback My Wok 1. Review Transactions (a) to (h) summarized on page 18 in the text. Recall that the effect of every transaction must modify the accounting equation, yet cause it to remain in balance overall 2. Prepare an income statement for July Hall Moon Realty 2. Prepare an income statement for July Half Moon Realty Income Statement For the Month Ended July 31, 2017 Sales commissions 32.000 Expenses: Rent expense 9,310 X Salaries expense 3,790 Auto expense 0 X Supplies expense 2,080 Miscellaneous expense 1.440 Total expenses 16,620 Net income 15460 Foodbach Check My Work 2. An income statement reports the revenues and expenses. When revenues are larger than the expenses, the difference is net income. 3. Prepare a statement of owner's equity for July. If an amount is zero, enter"0" Half Moon Realty Statement of Owner's Equity For the Month Ended July 31, 2017 Pat Glenn, Capital, July 31, 2016 X 31.000 x Investment on July 1, 2017 Net income for July o X 15,460 Withdrawals 10 0 0 Increase in owners equity 5.460 X Pat Glenn, Capital, July 31, 2017 36,460 3. Follow Example Exercise 1-5. Recall that the statement of owner's equity considers being one capital, additional investments of the owner and net income for the year and withdrawals to calculate the ending capital. The net income from the income statement is needed to complete the statement of owner's equity